Press Information Bureau
Government of India
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New Delhi: April 30, 2006
The Hannover Messe 2006, the world’s largest engineering technology fair, has generated total business to the tune of US $ 1.3 billion, besides serious enquiries amounting to US $ 100 million, according to Shri Rakesh Shah, Chairman, Engineering Export Promotion Council (EEPC). This includes a large number of business deals and joint ventures which were concluded between Indian engineering companies and their German counterparts including joint ventures between King Fisher and Air Bus; Mann Age and Force Motors, Deutsche Bann and Indian Railways. Spot orders were booked to the tune of US $ 15 million and serious enquiries worth US $ 85 million generated at the Hannover Fair in Germany (24-28 April 2006) in which India was the Partner Country after a gap of 21 years.
Agreements were signed between Indian Council for Medical Research and Helm Hotz. for Research and Cooperation in bio-technology and other medical areas. Energy was one of the focal areas in the Fair and a bilateral Indo-German Energy forum was formed.
Earlier, at a Seminar on “Industrial Sub-Contracting in India”, Dr. Ashwani Kumar, Minister of State for Industry, projected India as a potential global sub-contracting hub and said that the competitive advantage of India’s manufacturing sector was increasingly driving leading multinational corporations from across the world either to shift their manufacturing bases to India or source supplies from their sub-contracting partners. The key factors driving India’s emerging position in the industrial sub-contracting field are: high-quality of education and availability of a vast pool of engineering and managerial talents; low-cost labour coupled with cheaper engineering and designing skills; lower production cost; and stable investment climate and supporting government policies. Already there is a significant prevalence of sub-contracting in engineering, chemicals & pharmaceuticals, electronics, textiles, leather, automotive and aeronautic industry sectors.
Meanwhile, overwhelming response from German counterparts to the various seminars organised by EEPC at Hannover would enable India to double its engineering exports to Germany from the present level of US $ 545 million to US $ 1090 million (i.e., over US $ 1 billion) in the coming three years, Shri Shah said, adding that foreign direct investment (FDI) from Germany to India would also double in the next three years. EEPC would also seriously take up the concept of Engineering Process Outsourcing (EPO) after this event on the basis of the data bank created of the German counterparts and the estimated market for this sector could be US$ 10 billion achievable in 3 year’s time.
A joint venture was also signed between VDMA (German Engineering Federation) and EEPC for furtherance of development of trade and investment between India and Germany as well as to co-organise trade and market research. Over 343 Indian entrepreneurs participated in the Hannover Messe which had a footfall of more than 35,000.
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Hannover
April 25, 2006
Exports of auto components from India have clocked a record compounded annual growth rate of 33% in the last 3 years, owing to a huge increase in sourcing of auto components from India by several developed countries. Value-realisation from India’s auto components exports are projected to touch US $ 25 billion by 201, as many Indian companies are snapping up plants and operations overseas to gain direct access to global OEMs (Original Equipment Manufacturers) and expanding their product range, besides benefiting from outsourcing synergies. This was indicated by Mr. Rakesh Shah, Chairman, Engineering Export Promotion Council (EEPC), at a Business Seminar on Auto Component Sector in India, jointly organized by the Ministry of Commerce & Industry; EEPC; and India Brand Equity Foundation (IBEF) in Hannover today. The Indian auto industry produces an estimated 9.7 million vehicles, propelled by a surging domestic demand which has pushed the growth rate of the auto industry in India to 20% in the last couple of years. The strong growth of the Indian automobile industry is backed by a vibrant auto component sector in India manufacturing the entire range of components required for various type of vehicles, with engine parts, drive transmission and steering systems accounting for half of the total output, Mr. Shah said.
Mr. S.N. Menon, Commerce Secretary, Government of India, chaired the session which was also addressed by Dr. Johannes Wamser, author of Wirtschaftspartner Indien; Dr. Holker Hildebrandt, CEO, BME; Mr. A.K. Taneja, President, Auto Component Manufacturers Association (ACMA); and Mr. Andreas Lapp, CEO, LAPP Group. Mr. Menon highlighted the fact that many international auto majors are manufacturing in India today such as General Motors, Toyota, Ford, Honda, Hyundai, Volkswagen, Suzuki and Mercedes, while most of them are also outsourcing their components from India. The Indian auto component industry is also driven by strong R&D capabilities which represent one of its major competitive strengths, he said.
The front runners of the domestic auto component industry have commenced direct supplies to the major global OEMs like General Motors, Mitsubishi, etc. In fact, the share of export revenues accounted for by OEMs has increased from 30% in 1999 to 70%in 2005. Stating that the Indian manufacturing industry has become globally competitive, Mr. Rakesh Shah summed up what he called the India Advantage in auto components, attributing it to the following factors backed by sound government policies – availability of raw materials; availability of skilled manpower at low cost; quality that is world class; tremendous engineering capability; and the advantage of location.
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Hannover
April 25, 2006
Mr. Kamal Nath, Minister of Commerce & Industry, has made it clear to the World Trade Organisation (WTO) that subsistence agriculture is not for negotiation, nor would any moves that could lead to deindustrialization in developing countries be acceptable. This formed part of the Doha mandate reiterated in the July framework and must be respected by all, he told the Director General of WTO Mr. Pascal Lamy, while transiting through Geneva from Hannover. He expressed disappointment that the principal objective of the Doha Round of multilateral trade negotiations -- viz., that development dimension should be at the core of the global trade talks – was being lost sight of and there could be no progress in the talks due to the intransigence of developed countries of crucial issues of concern to the developing world such as agricultural market access, domestic support etc. “Commerce is for negotiations, not subsistence”, Mr. Kamal Nath said while addressing a news conference in Geneva earlier today.
Reflecting a continued tough stance on key issues, Mr. Kamal Nath called upon developed countries to realise that agricultural tariffs were a major instrument for protection of farmers against subsidized imports and “we cannot be expected to give up that protection”, he said. The heavy farm subsidies given by developed countries must be effectively reduced below applied levels as these were trade distorting and countries like India should not be expected to pay a price for developed countries doing something which they should not be doing in the first place. He also spoke strongly against attempts to reinvent or redefine the Doha mandate. In this context, he mentioned, a US proposal received yesterday on special safeguard mechanism (SSM) in agriculture which, he said, was very retrograde and was against the very spirit of the mandate agreed upon, as it would adversely impact on the interests of developing countries.
On the issue of industrial tariffs or non-agricultural market access (NAMA), Mr. Kamal Nath made it absolutely clear that India had provided market access unilaterally since the Uruguay round – in fact, overall reduction amounted to almost 55% in the last 5 years whereas developed countries like the US and the European Union (EU) had made no reduction at all since the Uruguay Round. He said they must reduce by 55% to come to parity with India in NAMA before seeking market access in developing countries. He further pointed out that developed countries had provided full protection to develop their own industries and could not now deny developing countries the same.
On Services, he said India had made revised offers in a number of sectors, but this was not matched by offers from the US or the EU.
While reiterating India’s commitment to the multilateral trading system, Mr. Kamal Nath made it clear that there could be no compromise on the special & differential (S&D) treatment for developing countries like India in the ongoing negotiations.
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DOING BUSINESS WITH INDIA A WIN-WIN PROPOSITION – ‘DOING BUSINESS IN INDIA’ SEMINAR AT HANNOVER
Hannover
April 25, 2006
Doing business with India is a win-win proposition – this was the message conveyed by Indian participants at a largely attended panel discussion on “Attractiveness of India as an Investment Destination” as part of a day-long Seminar on “Doing Business in India”, which was organized by the Federation of Indian Chambers of Commerce and Industry (FICCI) and KPMG in Hannover today. Investing in India is being simplified for the benefit of foreign investors, Dr. Ashwani Kumar, Minister of State for Commerce & Industry, said while urging the German industry to come and be a part of the Indian growth process. Other leading participants in the discussion included Dr. Ajay Dua, Secretary (Industrial Policy & Promotion), Ministry of Commerce & Industry; Mr. Saroj K Poddar, President, FICCI; Mr. V.R.S. Natrajan, Chairman & Managing Director, Bharat Earth Movers Ltd.; Dr. Laszio Straub, Vice President , Corporate Development, Knorr-Bremse; and Dr. Sibylle Bartels-Hetzler, Member of the Board, KPMG, Germany. The Minister also released a FICCI-KPMG publication titled “Investing in India”, which brings out the emergence of India as one of the fastest growing economies in the world and the various steps taken to encourage foreign investment into India including the process of lowering FDI caps in different sector which was being judiciously done.
Dr. Dua reiterated that the total factor productivity in Indian industry was much higher than in other emerging economies and had become a major reason for India’s emergence as an FDI destination. “Not only does India enjoy advantages in terms of availability and remuneration for labour but also there are considerably opportunities in India to substitute labour intensive processes for capital intensive activities. Also the vast domestic market for most consumer and durable goods and its rapid growth due to higher disposable incomes in hands of young population have made India an ideal domestic growth led market economy. By whichever criterion middle class is identified, the purchasing power in hands of Indian urban class as well as rural rich is growing and their appetite for consumer and white goods is growing”, Dr. Dua said.
He also highlighted India’s large production of agricultural goods like cotton, tea, pulses and milk besides huge reserves of iron ore, bauxite and coal. The high-savings rate of 29% in India was flagged as an added factor for undertaking new investments in India by Dr. Dua. Reinforcing the message, Mr. Poddar said 70% of foreign companies investing in India were making profits and urged German companies to “consider India in your investment goals and look at India with interest and enthusiasm “.
The liberalization of rules and regulations in India, according to Dr. Dua, had unleashed a spirit of enterprise and promoted trade, both domestic and foreign. This combined with the diligence and discipline of India’s labour force had contributed to the significant economic growth witnessed in India in recent years, he pointed out, adding that this growth would further accelerate once the physical infrastructure of power, roads and ports got improved.
The two other panel discussions held today as part of Doing Business with India event were panel discussions on: “Regulatory Aspects of Starting Business in India” and “Entry Strategies for SMEs to India”.
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INFRASTRUCTURE BOTTLENECKS IN INDIA BEING ADDRESSED: AJAY DUA AT INDO-GERMAN BUSINESS SUMMIT
Hannover
April 25, 2006
Participating in a discussion on “Opportunities and Challenges for Infrastructure Development in India”, held yesterday as a part of the Indo-German Business Summit organized by Engineering Export Promotion Council (EEPC) at the Hannover Technology Fair 2006 which was inaugurated by the Prime Minister of India Dr. Manmohan Singh and the German Chancellor Dr. Angela Merkel, Dr. Ajay Dua, Secretary (Industrial Policy & Promotion), Ministry of Commerce and Industry, emphasized that adequate efforts were being made to address the infrastructural bottlenecks in India.
Recalling that Prime Minister Dr. Manmohan Singh had indicated that an investment of about US $ 150 billion is needed to bring the physical infrastructure of roads, ports and electricity in India to a satisfactory level, Dr. Dua observed that several measures had been initiated to catalyse the required investment. As against about 1.8 kilometers of new roads built daily till 2004, India is now building over 4 kilometers of road every day. Almost 6000 kilometers of national highway, connecting the four metropolitan cities, are ready and by 2008, North-South-East-West Corridor would be ready. To improve the rail connectivity, new freight corridors are being planned and the first phase of the Delhi Metro had been completed. He was optimistic even in the electricity industry, much greater public-private participation on BOT basis would be forthcoming now that the basic issues had been addressed in the Indian Electricity Act of 2003.
He urged the German industries to invest in the five coalfield mega power projects of 4000 MW each which were recently advertised on behalf of India. German companies like ABB, Siemens, Voith etc. have considerable experience of India and arer world leaders of electricity industry. FDI of 100% is now allowed in India in all segments of the industry viz., generation and transmission.
Dr. Dua reiterated that the basic infrastructure of banking and capital market already existed in India with 23 stock exchanges and several thousand bank branches which were being constantly computerized and interlinked. The telecom infrastructure, particularly the mobile phones and broad bands were fast expanding and Indian airports and sea ports were being modernized with private investment now being significantly increased, he said.
In particular, Dr. Ajay Dua mentioned that the industrial infrastructure of clusters, Special Economic Zones (SEZs) and Industrial Parks were being upgraded and systematically expanded. About 400 SME clusters and 2000 artisan clusters accounting for 60% of India’s manufacturing exports were being for modernization, while 14 functional SEZs had been approved, along with 74 multi product zones. The Indian fiscal laws were being amended, Dr. Dua informed, in order to give greater concessions to private developers wanting to develop infrastructure.
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KAMAL NATH FOR BIG PUSH TO ECONOMIC
DIMENSION OF INDO-GERMAN RELATIONS
OUTLINES AREAS OF COOPERATION FOR SMEs
CALLS FOR DISMANTLING OF NON-TARIFF BARRIERS IN EU AT INDO-GERMAN BUSINESS
SUMMIT IN
HANNOVER
Hannover
April 24, 2006
Stating that India’s presence as a Partner Country in Hannover marks the renewal of its strong and robust relations with Germany, Mr. Kamal Nath, Minister of Commerce and Industry, Government of India, today called for giving a big push to expanding the economic dimension of Indo-German relations. The foundation of mutually beneficial commercial relations between the two countries lies in leveraging both the countries’ inherent manufacturing strengths, he said while addressing the second session of the Indo-German Business Summit today at the Hannover Fair, which was inaugurated last evening by the Prime Minister of India Dr. Manmohan Singh and the German Chancellor, Dr. Angela Merkel.
“The strongest endorsement of India’s emerging potential as the next global manufacturing champion comes from the fact that today approximately 80% of all German investors present in India are manufacturing firms – all of them world leaders in their field – mostly from the electronics and electrical sectors, chemicals & mechanical engineering and auto components. Daimler Chrysler, Siemens, Bayer, BASF, Robert Bosch, Allianz, Thyssen Krupp and SAP come to mind”, the Minister said, adding that the relationship was about to enter a new phase as Indian companies with new-found confidence in their competitive strengths were also increasingly looking at Germany as a base for value-added operations.
The potential areas of Indo-German cooperation outlined by Mr. Kamal Nath include telecom, engineering, environmental technology, chemicals, pharmaceuticals and food processing, besides renewable sources of energy where India could benefit in particular from German expertise in wind energy technology. “Closer state-to-state relations between the Indian and German provinces would help in providing a boost to our economic ties”, he said, in a reference to the participation of several Indian states in the Hannover Fair including Jharkhand, Karnataka, Orissa and West Bengal.
Small & Medium Enterprises (SMEs) of India and Germany could cooperate in particular in the fields of auto-components, machine and hand tools, toys and pharmaceuticals, he said. Further, with increasing concern about environmental sustainability, “there is a huge opportunity for strengthening Indo-German ‘green business’ relations in the areas of dye and dye intermediaries, textiles, chemicals and waste utilization technologies”, he stressed.
Referring to the increasing stringency of standards and complex rules and procedures in the European Union (EU) which acted as non-tariff barriers (NTBs) to trade, Mr. Kamal Nath sought the cooperation and support of Germany – India’s largest trading partner in Europe along with the UK and Belgium – in settling the issues of various NTBs that Indian exporters had been facing in the EU.
Bilateral trade and investment
· India’s trade with Germany in 2004-05 stood at US $ 6.5 billion, indicating a robust growth of nearly 20%.
· India’s exports to Germany were US $ 2.64 billion while India’s imports from Germany were US $ 3.86 billion.
· Bilateral trade has been growing at a record 20% for the past 3 years.
· The inflow of total German FDI into India (1991-December 2005) at US $ 1.34 billion has been less than one and a half billion dollars.
· There are more than 600 German companies operating in India and an increasing number of Indian companies investing in Germany.
· The actual figures of FDI inflows, therefore, do not reflect the synergies and complementarities of the two economies.
· India has emerged as one of the largest consumer markets in the world, making it one of the most attractive investment destinations.
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Press Information Bureau
Government of India
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New Delhi: April 20, 2006
India is launching a major infrastructure project with an investment of around US $ 200 million to create 13 new, modern, integrated inland ports on its borders. Announcing this in his opening statement at the First Meeting of the SAFTA* Ministerial Council in Dhaka, Shri Jairam Ramesh, Minister of State for Commerce & Industry, said that India look forward to similar investments by its SAFTA partners as well, adding that “this is an area where we can jointly seek assistance from multilateral financing institutions”.
“We are all committed to faster trade. We are all pledged to freer trade. We are all wedded to fairer trade. That is the triple meaning of the F in SAFTA. India looks at such free trade pacts not just as economic tools, tools to boost exports and equally important, stimulate imports. We see them fundamentally as political instruments that signal and herald our commitment to greater regional engagement”, the Minister said.
He emphasised that the following two conditions must be met if SAFTA, under which the tariff liberalisation begins in July 1, 2006, is to have any operational meaning – (a) all members must have only negative list and (b) movement restrictions which were against the very essence of SAFTA were also abolished.
While stating that trade brings macro-gains, Shri Jairam Ramesh said that it could also bring micro-pains as global trade creates local impact and hence adjustment assistance is necessary. “SAFTA will not be fully successful unless we simultaneously embark on a wide array of trade facilitation measures. Infrastructure and logistics for expanding trade along the lines envisaged in SAFTA is simply not on the ground today. This should engage our attention urgently. SAFTA is a crucial milestone. Let us now collectively move forward, sensitive to each others concerns, mindful of each other’s interests, particularly in agriculture and textiles. India is fully aware of its special responsibility to make SAFTA work for the benefit of not just our economies but also of our people, of the aam admi in our countries”, Shri Ramesh said.
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* South Asian Free Trade Agreement
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SB/NSD/MRS
Press Information Bureau
Government of India
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New Delhi: April 20, 2006
The Prime Minister of India, Dr. Manmohan Singh, is scheduled to inaugurate the Hannover Technology Fair in Germany along with the Chancellor of Germany, Dr. Angela Merkel on 24th April, 2006. Shri Kamal Nath, Minister of Commerce & Industry, would also be present on this occasion. In acknowledgement of the growing strength of Indian economy, India has been named the Partner Country this year, a privilege coming after a gap of 21 years. The Fair, which is widely recognised as the world’s largest and most important technology event, is the single biggest brand-building exercise for Indian manufacturing, engineering and related technologies.
India Brand Equity Foundation (IBEF) today released a special report titled “Proven Strategies: Successful German Companies in India”. A useful guideline for MNCs seeking to enter India, the Report synthesizes inside and strategies of 30 top German companies with an established presence in India.
Some key highlights of the Report include:
· 65 percent of the companies rated India “High” or “Very High” in terms of attractiveness of market size, and nearly 85 per cent felt that India was one of the most exciting growth markets in the world.
· 65 per cent of the manufacturing companies have established manufacturing facilities in India and another 30 percent are planning to set-up a manufacturing base in the near future to leverage advantages India offers.
· 18 per cent of the companies are planning to either start or invest more on their R&D facility in India.
· 6 per cent of the companies are looking at India as an outsourcing destination for their IT and other backend operations.
India’s participation at Hannover, the largest ever by a Partner Country
· India will organize a business event on each day of the fair. The Prime Minister of India and the Chancellor of Germany are likely to inaugurate the Indo-German Business Summit being jointly organized by IBEF, APA and the Hannover Messe on 24th April 2006.
· India has taken 11,500 sqm of space, the largest ever by a Partner Country.
· Nearly 320 Indian companies including Bharat Forge, Reliance, Ashok Leyland and other organisations, large as well as Small & medium enterprises (SMEs), and 5 state governments are participating in the fair representing various sectors including Automotive, Energy, Engineering Services, Research & Development, Subcontracting, Digital Processes, Micro Technology and Science & Technology (Satellite Technology, Innovations).
· High-profile business delegations led by Presidents of CII, ACMA, FICCI and EEPC will participate at the fair.
· IBEF and APA are organizing an Indo-German Business Summit. The summit will focus on the ‘opening markets for trade and investment’.
· A special seminar on ‘Doing Business in India’ is being organized with special presentations on ‘Entry Strategies for SMEs to India’.
· With the staggering growth of the automotive sector globally and in India, a seminar on the ‘Auto Component Sector in India’ is being organized which will be addressed by the Chairman of the session, Mr. SN Menon, Commerce Secretary, Minister of Commerce, Government of India.
· To encourage investment opportunities in the State of Karnataka, a seminar is being organized by showcasing the strengths of investing in Karnataka.
· An Indo-German Technology Partnership Forum will be addressed Federal Science & Technology Minister Kapil Sibal; and President, CII and Managing Director, Ashok Leyland Ltd. R Seshasayee;
· A special seminar on Investment opportunities in Orissa is also a point of attraction at this year’s Hannover Fair.
· ‘Resurgent Bengal’- This seminar will highlight the great investment opportunities in the state of West Bengal and is specially organized by the Government of West Bengal.
· A Seminar on Industrial Sub Contracting in India will be organized by EEPC in association with VDMA and BME.
· A special workshop on technical Education in India too will be organized by IIT EU alumni in association with EEPC.
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SB/NSD/MRS
Press Information Bureau
Government of India
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New Delhi: April 19, 2006
Shri Kamal Nath, Union Minister of Commerce & Industry, released a Compendium on “India’s Foreign Direct Investment Policy”, here today, which brings together India’s current policy on FDI along with the relevant Press Notes.
Later addressing media persons, Shri Kamal Nath said that the government had, for the first time, undertaken recently a comprehensive review of FDI policy and associated procedures, given the fact that “Foreign Direct Investment (FDI) plays an important role in the long term economic development of the country, not only as a source of capital but also for enhancing competitiveness of the domestic economy through transfer of technology, strengthening infrastructure, raising productivity and generating new employment opportunities”.
As a result of the review, a number of rationalization measures have been undertaken which, include, dispensing with the need of multiple approvals from Government and/or regulatory agency that existed in certain sectors, extending the automatic route to more sectors, and allowing FDI in new sectors. “Liberalization of FDI Policy is expected to attract large FDI inflows in the development of infrastructure, technological upgradation of Indian Industry though green field investment in manufacturing, and in projects having potential for creating employment opportunities”, Shri Kamal Nath said.
The Compendium “Foreign Direct Investment Policy” is set in three Sections:
Section A gives an overview of extant FDI policy. In the sectors listed in the statement, FDI is allowed only in the indicated activities subject to the equity limits and/or other conditions, as indicated. FDI in all sectors/activities is subject to sectoral guidelines and requirements. FDI is not permitted in Retail trade (except Single Brand product retailing); Lottery; Gambling and Atomic Energy. In the remaining sectors/activities, FDI up to 100% would be allowed on the automatic route.
Section B contains relevant Press Notes on FDI policy and procedures in a chronological order. All Press Notes, issued since 1991, are available at the website www.dipp.gov.in.
Section C deals with FDI inflow statistics since 1991, including the country-wise and sector wise details. It also gives FDI inflow statistics, as per international practices, since 2000-01. FDI statistics is also available at the website www.dipp.gov.in
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SB/NSD/MRS
Press Information Bureau
Government of India
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New Delhi: April 19, 2006
Hannover Technology Fair 2006 to be held from 24-28 April, 2006 will have India as the “Partner Country”, after a gap of 21 years. The Fair, which is widely recognised as the world’s largest and most important technology event, is the single biggest brand-building exercise for Indian manufacturing, engineering and related technologies.
The Fair enjoys a commanding role globally for expanding business in industrial engineering and will showcase ground breaking innovations in the fields of Process Automation, Factory Automation, Industrial Building Automation, Energy, Pipeline Technology, Subcontracting, Digital Factory, Industrial Facility Management & Services, Micro Technology, and Research & Technology, Shri Kamal Nath, Union Minister of commerce & Industry, informed while briefing newspersons on the Hannover Fair here today.
The Engineering Export Promotion Council (EEPC), supported by the India Brand Equity Foundation (IBEF), is the lead organiser of the Hannover Fair.
The highlights of the Hannover Fair 2006 will be as follows:
1. High-profile Government Participation
· The Prime Minister of India, Dr. Manmohan Singh, will be inaugurating the Fair along with the Chancellor of Germany, Dr. Angela Merkel. Shri Kamal Nath, Minister of Commerce & Industry, will participate in the Hannover Fair. Chief Ministers of Orissa, Jharkhand, West Bengal, Karnataka and Gujarat are also likely to attend, along with senior government officials and CEOs of various public sector undertakings.
· India's rising economic status and emergence as a innovation and hi-end manufacturing hub will be in the spotlight at Hannover, the second major stop for “India Everywhere” after Davos. ‘India Everywhere’ - a specially designed campaign led by India Inc and supported by the IBEF was launched at the World Economic Forum’s Annual Meeting in Davos in January 2006, aims at drawing attention to the unique economic value proposition India offers to the world by maintaining a continued and sustained presence in major global events throughout 2006.
· The following Brand India themes are being showcased at the Hannover Messe and beyond in Berlin, Frankfurt, etc, through a concerted media campaign:
- Fastest Growing Free Market Democracy
- Innovation & Skill-Intensive Manufacturing Hub
- Incredible India
· Nearly 320 Indian companies including Bharat Forge, Reliance, Ashok Leyland and other organisations, large as well as SMEs, and 5 state governments are participating in the fair representing various sectors including Automotive, Energy, Engineering Services, Research & Development, Subcontracting, Digital Processes, Micro Technology and Science & Technology (Satellite Technology, Innovations).
· India will organize a business event on each day of the fair. The Prime Minister of India and the Chancellor of Germany are likely to inaugurate the Indo-German Business Summit being jointly organized by IBEF, APA and the Hannover Messe on 24th April 2006.
· India’s participation at Hannover is the largest ever by a Partner Country. India has taken 11,500 sqm of space, the largest ever by a Partner Country.
· High-profile business delegations led by Presidents of CII, ACMA, FICCI and EEPC will participate at the fair.
5. India on the Agenda
· IBEF and APA are organizing an Indo-German Business Summit. The summit will focus on the ‘opening markets for trade and investment’.
· A special seminar on ‘Doing Business in India’ is being organized with special presentations on ‘Entry Strategies for SMEs to India’.
· With the staggering growth of the automotive sector globally and in India, a seminar on the ‘Auto Component Sector in India’ is being organized which will be addressed by the Chairman of the session, Mr. SN Menon, Commerce Secretary, Minister of Commerce, Government of India.
· To encourage investment opportunities in the State of Karnataka, a seminar is being organized by showcasing the strengths of investing in Karnataka.
· An Indo-German Technology Partnership Forum will be addressed Federal Science & Technology Minister Kapil Sibal; and President, CII and Managing Director, Ashok Leyland Ltd. R Seshasayee;
· A special seminar on Investment opportunities in Orissa is also a point of attraction at this year’s Hannover Fair.
· ‘Resurgent Bengal’- This seminar will highlight the great investment opportunities in the state of West Bengal and is specially organized by the Government of West Bengal.
· A Seminar on Industrial Sub Contracting in India will be organized by EEPC in association with VDMA and BME.
· A special workshop on technical Education in India too will be organized by IIT EU alumni in association with EEPC.
6. Incredible India at Hannover
· India at Hannover is not just about business and investment. India will showcase a kaleidoscope of culture, cuisine, music and dance.
NOTE: For more information, please visit www.indiaathannover.org
SB/NSD/MRS
Press Information Bureau
Government of India
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KAMAL NATH URGES
CLOSER LINKS WITH ASIA AS INDIA SEEKS SECOND COMING FOR ITS MANUFACTURING
SECTOR CII
NATIONAL CONFERENCE AND AGM
New Delhi: April 19, 2006
Shri Kamal Nath, Union Minister of Commerce and Industry, today said that India must necessarily develop closer linkages with Asian countries such as Thailand, Malaysia, Indonesia, Japan, China, Singapore and Korea, as it seeks a second coming for its manufacturing sector.
Addressing the National Conference and Annual General Meeting of the Confederation of Indian Industry (CII) here today, he cited the following to flag the point that “India is on the right track”: (a) Since 1991, India’s trade with the 10 largest Asian trade partners had grown at paces ranging from four-fold growth to sixteen-fold. Already, the Asian region accounts for 45 percent of India’s external trade; (b) The growth in India’s trade was the fastest with China and ASEAN as compared to any other region. India’s bilateral trade with ASEAN grew from 4 billion dollars a decade ago to 20 billion dollars last year, and with China, from 1 billion dollars to 15 billion dollars during the same period; and (c) A recent IMF study showed that India today trades more with East and South East Asia than it does with the rest of the world.
Mooting the idea of an Asian Economic Community, Shri Kamal Nath said: “Integration is a process that is being driven today by the technological revolution that shrinks distances, and by globalization. It is only inevitable that we seek to take the existing relationships to a higher level, where we envision an Asian Economic Community, which encompasses ASEAN, China, Japan, Korea and India. One cannot but be captivated by the vision of an integrated market, spanning the distance from the Himalayas to the Pacific Ocean, linked by efficient road, rail, air and shipping services. Such a community would be roughly the size of the European Union in terms of income, and bigger than NAFTA in terms of trade. It would account for half the world’s population, and it would hold foreign exchange reserves exceeding those of the EU and NAFTA put together. This is an idea whose time is fast approaching, and we must be prepared for it collectively”.
The Minister said that India’s Look East Policy had opened up new windows of opportunities, adding said that India was negotiating a Free Trade Agreement (FTA) with the ASEAN, after having been a sectoral dialogue partner of ASEAN since 1992 and a full dialogue partner since 1995. “We already have a Comprehensive Economic Cooperation Agreement (CECA) with Singapore in place, and an FTA with Thailand nearing completion. We have begun exploratory talks with China and Korea, and are active in BIMSTEC. SAFTA is now a reality. We feel that these free trade agreements, will give us business and economic leverage on the world trading platform as well at the WTO”, he said.
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SB/NSD/MRS
Press Information Bureau
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New Delhi: April 18, 2006
The Minister of State for Industry, Dr. Ashwani Kumar today said that efforts would be made to channelise more and more foreign investment from Mauritius into India’s infrastructure sector. India would also work closely with Mauritius for economic cooperation in tourism, education, health services, fisheries and small & medium enterprise development, he added. This was indicated during Dr. Ashwani Kumar’s Meeting with the visiting Minister of Industry, Small & Medium Enterprise, Commerce and Cooperatives of the Republic of Mauritius, Dr. Rajeshwar Jeetah, here.
Speaking on the occasion, Dr. Kumar said that Indian would encourage further deepening of economic engagement between the entrepreneurs of the two countries that is consistent with their respective competitive advantages. Mauritius ranks first in respect of FDI inflows to India amongst all the countries with cumulative inflows amounting to US $ 10.98 billion. Top sectors attracting FDI inflows from Mauritius (from January 2000 to December, 2005) are electrical equipment, telecommunications, fuels, cement & gypsum products and services sector (financial & non-financial). Mauritius has been granted 39 Technical Collaborations since 1991. The top five sectors attracting technology from Mauritius are fuels, chemicals, hotel & tourism, telecommunications and industrial machinery, in that order. During the last 10 years, approved Indian direct investment in joint ventures and wholly owned subsidiaries in Mauritius has been to the tune of US $ 1141.42 million.
Indian exports to Mauritius have been US $ 248 million in 2004-2005 and Indian imports from Mauritius have been US $ 7 million in the same period.
The first round of negotiations for the proposed India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement was held on 8th August, 2005 at New Delhi in which it was agreed to set up three Working Groups on (i) Trade in Goods; (ii) Trade in Services; and (iii) Investment & Economic Cooperation. So far, five rounds of negotiations between the two countries have taken place. The last round was held in New Delhi on 23-24 February, 2006.
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SB/NSD/MRS
Press
Information Bureau
Government of India
***
HIGH LEVEL COMMITTEE ON MANUFACTURING CONSTITUTED
New Delhi: April 18, 2006
The government has decided to constitute a high-level Committee on Manufacturing for implementation and regular review of initiatives as may be adopted by the government for achieving a sustained growth of 12 % in manufacturing. While the Prime Minister would Chair the Committee, the members would include Commerce & Industry Minister; 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 Member/Convenor.
The permanent invitees would include: Member Secretary, NMCC; Commerce Secretary; Finance Secretary; Secretary, Department of Industrial Policy & Promotion; Secretary, Ministry of Heavy Industry & Public Enterprises; Secretary, Ministry of SSI &ARI; and Secretary, Economic Advisory Council.
The Committee would address macro-economic issues impinging on the growth and competitiveness of the manufacturing sector in India, and create a policy framework for necessary reforms covering all the aspects of manufacturing competitiveness. The Committee would also ensure coordination among the various Ministries which deal with manufacturing sub-sectors and review the implementation of time-bound action plans to achieve the objective of 12% growth in manufacturing.
The Committee would initiate steps to make India a manufacturing hub for areas having potential for global competitiveness such as textiles, automobiles, leather, food processing, steel, metals, chemicals & Petroleum products.
The Committee would ensure robust growth of manufacturing sector through appropriate interventions such as investments in innovation and technology, skill building, right market framework and regulatory environment etc.
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SB/NSD/MRS
Press Information Bureau
Government of India
***
New Delhi: April 10, 2006
In rupee terms, India’s merchandise exports were Rs.445657.97 crores, during April-March, 2005-2006, which is 23.15% higher than the value of exports during April-March, 2004-2005. In dollar terms, exports during April-March, 2005-2006 are valued at US $ 100606.92 million (US $ 100.6 billion) which is 24.71% higher than the level of US $ 80672.41 million during April-March, 2004-2005.
Exports during March, 2006 are valued at US $ 10906.21 million which is 20.63% higher than the level of US $ 9041.31 million during March, 2005. In rupee terms, the exports were Rs.48511.93 crores, which is 22.81% higher than the value of exports during March, 2005.
India’s Imports during April-March, 2005-2006 are valued at US $ 140237.65 million representing an increase of 31.52% over the level of imports valued at US $ 106630.51 million in April-March, 2004-2005. In Rupee terms, the imports increased by 29.80%.
Oil imports during April-March, 2005-2006 are valued at US $ 43844.26 million which is 46.84% higher than oil imports valued at US $ 29858.28 million in the corresponding period last year. Non-oil imports during April-March, 2005-2006 are estimated at US $ 96393.39 million which is 25.56% higher than the level of such imports valued at US $ 76772.23 million in April-March, 2004-2005.
Imports during March, 2006 are valued at US $ 13811.65 million representing an increase of 18.68% over the level of imports valued at US $ 11637.67 million in March, 2005. In Rupee terms the imports increased by 20.83%.
The trade deficit for April-March, 2005-2006 is estimated at US $ 39630.73 million which is higher than the deficit at US $ 25958.10 million during April-March, 2004-2005.
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.
|
DEPARTMENT OF COMMERCE IMPORTS & EXPORTS : (PROVISIONAL) |
||
|
(Unadjusted for late returns) |
||
|
|
March |
April-March |
|
EXPORTS
|
||
|
2004-2005* |
9041.31 |
80672.41 |
|
2005-2006 |
10906.21 |
100606.92 |
|
|
20.63 |
24.71 |
|
IMPORTS |
||
|
2004-2005* |
11637.67 |
106630.51 |
|
2005-2006 |
13811.65 |
140237.65 |
|
|
18.68 |
31.52 |
|
TRADE BALANCE
|
||
|
2004-2005* |
-2596.36 |
-25958.10 |
|
2005-2006 |
-2905.44 |
-39630.73 |
|
|
||
|
DEPARTMENT
OF COMMERCE |
||
|
(Unadjusted for late returns) |
||
|
|
March |
April-March |
|
EXPORTS
|
||
|
2004-2005* |
39501.95 |
361879.16 |
|
2005-2006 |
48511.93 |
445657.97 |
|
|
22.81 |
23.15 |
|
IMPORTS |
||
|
2004-2005* |
50845.57 |
478301.75 |
|
2005-2006 |
61435.58 |
620826.68 |
|
|
20.83 |
29.80 |
|
TRADE BALANCE
|
||
|
2004-2005* |
-11343.62 |
-116422.59 |
|
2005-2006 |
-12923.65 |
-175168.71 |
|
|
||
Press Information Bureau
Government of India
***
DEVELOPING COUNTRIES NEED GREATER MARKET ACCESS TO GROW OUT OF
POVERTY; KAMAL NATH
TELLS ESCAP
New Delhi: April 10, 2006
Developing countries need greater market access to grow their way out of poverty, Shri Kamal Nath, Union Minister of Commerce & Industry, said while addressing the annual session of the UN-ESCAP (Economic & Social Council for Asia & Pacific) in Jakarta today. While underlining India’s commitment to the multilateral trading system and to the successful completion of negotiations under the Doha Round, Shri Kamal Nath emphasised once again that nearly 96% of the world’s 2.6 billion farmers resided in developing countries – a vast majority of them in the ESCAP region.
“We have to give due recognition to the principles of equity embodied in concepts such as special products and special safeguard mechanism because food security, livelihood security and rural development needs are poverty-reducing objectives. We also feel that liberalization in the services sector would open innovative avenues, which will stimulate economic growth and will result in transformation of developing countries”, the Minister said.
Stating that Government of India is as deeply committed to social progress as to economic development, Shri Kamal Nath said: “India shares with other countries of this region the need for rapid poverty reduction through employment generation. The touch-stone of any policy has to be the creation of jobs In order to address the twin objectives of reducing unemployment and providing rural infrastructure the National Rural Employment Guarantee Scheme has been implemented recently in my country. This landmark initiative marks a new beginning towards guaranteeing the right to work, and we hope it will decisively address the unemployment situation in the rural areas”.
He also underscored the commitment of India to strengthen infrastructure as evident in the recent setting up of a Special Purpose Vehicle called the India Infrastructure Finance Company Limited. “Together we have charted the roadmap that ESCAP is to take as the regional forum for Asia Pacific. I wish to reaffirm India’s close engagement with ESCAP to enable it to focus on its three fold objectives of Poverty Reduction, Managing Globalization and Emerging Social Issues”, he said.
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SB/NSD/MRS
Press Information Bureau
Government of India
***
RECORD 26% INCREASE IN INDIA’S EXPORTS FOR TWO YEARS IN SUCCESSION: KAMAL NATH
New Delhi: April 07, 2006
India’s merchandise exports have increased by 26% year on year, for two years now. “From 63 billion dollars in 2004, our exports this year have touched the magic figure of 101 billion dollars. Along with our Services imports & exports, our total economic engagement with the world tops 350 billion dollars”, Shri Kamal Nath, Union Minister of Commerce and Industry said at the Convocation function of the Institute of Management Technology (IMT), Ghaziabad today. Sir Ratan Tata also participated in the Convocation.
Referring to the ongoing changes in world demography with a greying of populations in the developed world, Shri Kamal Nath said: “The workforce – not just labour, but the skilled and technologically qualified manpower - would come from developing countries. This is an opportunity for India, which in ten years will have a workforce (not population, but workforce) larger than even China. With a right blend of IT, biotech and pharma manufacturing, topped up by qualified management, India could be the key destination for knowledge process outsourcing (KPO) and engineering process outsourcing (EPO) along with business process outsourcing (BPO)”.
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SB/NSD/MRS
ANNUAL SUPPLEMENT 2006 FOREIGN TRADE PLICY (2004-09)
New Delhi – April 7, 2006
'
ADDRESS BY SHRI KAMAL NATH, MINISTER OF COMMERCE & INDUSTRY
AT THE RELEASE OF
ANNUAL SUPPLEMENT TO THE FOREIGN TRADE POLICY 2004-09
New Delhi – April 7, 2006
1. INTRODUCTION
This Annual Supplement is the second in the series supplementing the Foreign Trade Policy 2004-09. In line with Government’s promise of a stable Foreign Trade Policy regime, this year’s supplement (in the same way as last year) does not alter the broad contours of the main Policy. However, recognizing the dynamic nature of international trade and the consequent need for periodic realignment of our international trade strategies, contemporary issues have to be addressed from time to time, and this is what this initiative does.
The changes in the Annual Supplement resulted from the inputs received through interactive sessions with various Export Promotion Councils, Industry organizations, Apex Chambers of Commerce & Industry and sister Departments of Government. The Board of Trade has emerged as an effective institutional mechanism and idea-generator for the FTP. A number of useful inputs have been obtained through the Working and Study Group reports and brain storming sessions of the Board of Trade.
2. TRADE PERFORMANCE
When the Government launched the new Foreign Trade Policy in August 2004, it set out with the ambitious objective of doubling India’s percentage share of global merchandize trade within five years. Merchandize trade in the very first year of the policy period grew at the rate of 26%. This year’s export figures are unprecedented. I am delighted to share with you that merchandize exports have crossed the ‘magic figure’ of 100 billion dollars. In fact, they have touched the ‘auspicious figure’ of 101 billion dollars. The annual growth rate is 25%.
Our imports have grown 32%, and stand at 140 billion dollars – but 43 billion is our oil bill. Thus, our non-oil imports are 97 billion dollars, a full 4 billion lower than our exports. On the non-oil front, therefore, we have a positive balance of trade.
3. SECTORAL EXPORT GROWTH
Exports from many sectors have surpassed our expectations. Project goods exports grew at the rate of 173%. Exports of non-ferrous metals, guar gum meal, computer software in physical form, rice, pulses, dairy products, all recorded a growth surpassing 50%. Commodities like man-made staple fibres, cosmetics and toiletries, iron-ore, coffee, processed food and transport equipment grew at the rate above the average, i.e. more than 25% during this period.
4. MARKET SHARE IN DIFFERENT COUNTRIES
India is steadily increasing its share in important markets. Growth in exports to UK has been 30%, to Singapore (with which we implemented the CECA) 54%. India’s exports to South Africa grew at 44% while for China the growth rate is 35%. We shall be releasing detailed statistics on all this in the form of a Ready Reckoner next month, after exact figures come in.
5. ‘FOCUS PRODUCT’ & ‘FOCUS MARKET’ SCHEMES
The other chief objective of the Foreign Trade Policy was providing a thrust to employment generation, particularly in semi-urban and rural areas. We are therefore introducing two new schemes to nurture this. We realized that certain industrial products can generate large employment per unit of investment compared to other products, and promoting their export would in turn give a thrust to their manufacture. This realization led to the formulation of the ‘Focus Product Scheme’ which aims to promote such exports.
The Scheme allows duty credit facility at 2.5% of the FOB value of exports on fifty percent of the export turnover of notified products, such as value added fish and leather products, stationery items, fireworks, sports goods, and handloom & handicraft items.
It is also necessary to penetrate markets, especially to which our exports are comparatively low. Some of our competitors are aggressively ‘occupying space’ in Latin America, in Africa and other destinations which Indian exporters have unfortunately been neglecting, perhaps due to high freight costs & undeveloped networks. But these are the markets of the future, and it is of strategic necessity that we enlarge our market share here.
For this we have a ‘Focus Market Scheme’ which allows duty credit facility at 2.5% of the FOB value of exports of all products to the notified countries.
The scrip and the items imported against it for both these schemes would be freely transferable.
These two Schemes would replace the Target Plus Scheme.
To take the benefits of foreign trade further to rural areas, the Vishesh Krishi Upaj Yojana is being expanded to include village industries based products for export benefits, and it is therefore renamed as Vishesh Krishi Upaj aur Gram Udyog Yojana – a rather long name, but one which adequately reflects its intent and coverage.
6. PROMOTING SERVICES EXPORT
While Services account for 52% of our GDP, our total services trade – exports & imports – totals more than 100 billion dollars. Expansion of the Services sector is vital for providing jobs to urban educated youth. In the WTO too we are actively engaged in the Services negotiations. A number of features have been added in the Served from India Scheme to encourage service exports.
The Scheme will now allow transfer of both the scrip and the imported input to the Group Service Company, whereas earlier transfer of imported material only was allowed.
7. INDIA EMERGING AS GEM AND JEWELLERY HUB
Because of a rich tradition of craftsmanship, enterprise and availability of skilled, low cost manpower India has the potential to become an international hub for Gems and Jewellery. We have already introduced some measures in the Budget. The diamond trade, which was concentrated in Antwerp, is moving out – to Dubai, to Tel Aviv. I want Mumbai be right up there, and not lose out to its fellow Asian cities. This Supplement now introduces a number of measures for facilitating export of value added products catering to changing needs of the market and facilitating easier product movement across the borders and allowing import of precious metal scrap for refining.
(a) We have large unutilized melting, refining and jewellery-making production capacity. To enable such capacities to be used in a productive manner, import of precious metal scrap and used jewellery will now be allowed for melting, refining and re-export of jewellery. However, such import will not be allowed through hand baggage.
(b) Gems & Jewellery exporters will now be allowed to re-import the rejected precious metal jewellery subject to refund of duty exemption benefits on the inputs only and not the duty on jewellery as was being done earlier.
(c) Many a times exporters faced the dilemma of unsold jewellery in the foreign markets because of changing designs and other such factors. To overcome this problem, Gems & Jewellery exporters will now, be allowed to export jewellery on consignment basis.
(d) Treatment of cut and polished precious and semi-precious stones enhance the quality and afford higher value in the international market. For this purpose, Gems & Jewellery exporters will now be allowed to export such items for treatment and subsequent re-import, within a period of 120 days.
(e) Increase of gold and silver prices in the international market over the past few years has made the present value addition norms on export of gold & silver jewellery unrealistic. The value addition norm for such items is being reduced from 7% to 4.5%.
Such measures will help Indian Gems and Jewellery to sparkle on the world stage.
8. AUTO-COMPONENTS
India is on the move, metaphorically as well as literally. We not only have the fastest growing automobile market in the world, but India is fast emerging as an important centre for sourcing auto-components. The FTP already extends a number of facilities for the sector. We shall now allow import of new vehicles by auto component manufacturers for R & D purposes without homologation. This is necessary to give our R&D labs easier access to the latest technologies current in the auto component industry.
9. AVIATION SECTOR
Supplies of stores (food, beverages and other supplies) and refueling of long distance flights has emerged as a big business opportunity. Currently, most airlines replenish supplies or refuel at Thailand, Malaysia or Singapore. Since these supplies were not treated as exports in India and the suppliers could not obtain the duty neutralisation benefits available to other export products the store supplies from India were not competitive enough. We have decided to treat such supplies on an equal footing with other exports, qualifying for benefits under various Export Promotion Schemes. This will hopefully enable India to offer competitive fuel prices and will attract mid route stops of the international flights.
10. MARINE SECTOR
Having done something for the ‘land’ and the ‘air’, we felt we must do something for the ‘sea’ too! We had already brought in some benefits for shrimp and tuna fishing through the budget. Now the list of specialized inputs used in the marine sector has been expanded to include additional items of chemicals and other additives within the present duty free entitlement of 1%.
11. DUTY FREE IMPORT AUTHORISATION SCHEME
Export production requires use of many inputs in small quantities. Even though such inputs are allowed for import without payment of customs duty under Advance Licensing Scheme, exporters generally do not import them because of lack of economies of scale and are forced to source them locally at a higher price. The existing Duty Exemption Schemes have been of little help in such cases because of design limitations.
To address the issue, the salient features of the Advance Licensing scheme (which allows imports before exports) and Duty Free Replenishment Certificate (which allows transferability of import entitlements) have been clubbed to evolve a new scheme named Duty Free Import Authorisation Scheme. The new scheme offers the facility to import the required inputs before the exports. It allows transferability of scrip once the export obligation is complete.
Imports made under this authorisation will be exempt from payment of basic custom duty, additional customs duty, education cess, anti-dumping duty and safeguard duty, if any. The scheme will come into effect from 1st May, 2006.
12. SERVICE TAX & FRINGE BENEFIT TAX
The incidence of un-rebated Service Tax and Fringe Benefit Tax on exports will be factored in the various duty neutralisation and remission schemes.
13. EPCG SCHEME
We have introduced certain flexibilities in the conditions relating to maintenance of average export performance under the EPCG Scheme, and also in the extension of export obligation period by 2 years, based on certain conditions.
14. EOUs
EOUs account for a substantial portion of our exports. Just because we have the new SEZ Act in place, it does not mean that our EOUs can be neglected. On the contrary, we will continue to nurture them.
In order to facilitate the smooth functioning of the EOU units, Development Commissioners will fix time limits for finalizing the disposal of matters.
EOU units in the textile sector are allowed to dispose of the left over fabrics upto 2% of CIF value of imports, on consignment basis. Settling accounts for every consignment is complex and time consuming. It has therefore been decided to allow disposal of left over material on the basis of previous year’s imports.
15. GENETICALLY MODIFIED (GMO) MATERIAL
For the benefit of the consumer clear guidelines for import of Genetically Modified Material are being laid down. While making such imports, products which have been subjected to Genetic Modification will have to carry a declaration stating the fact.
16. INTEREST PAYMENT ON REFUNDS
It has been decided that interest for delayed payment of refunds would be made by the Government to ensure accountability and cut delays.
17. TRADE FACILITATION
Clearance of import or export consignments are held up for want of test reports of samples drawn at the time of import or export. Therefore, to accelerate cargo clearances, it has been decided to allow pre-shipment test certificates from accredited international agencies in lieu of demanding only test reports.
18. EDI INITIATIVES
We are committed to simplifying procedures relating to international trade and putting in place an exporter friendly regime for obtaining import authorizations and disbursement of export linked incentives. A web based online system of filing import & export applications is functional.
Requests for obtaining authorizations relating to Advance Licence, EPCG Licence and DEPB are to be filed on the DGFT website with a digital signature and payment of licence fee through the Electronic Fund Transfer mode. No manual applications and supporting documents are required to be submitted. All EDI applications are processed within one working day. We propose to take more EDI initiatives in the next six months to take the process further.
19. CONCLUSION
Our FTP has served us well. What else could account for the ‘grand leap forward’ by our exports? Within just two years we have jumped 60%, from 63 billion dollars to 101 billion! But the real congratulations are due not to us – we have only prepared a document – but to you the exporters, the businessmen, the traders, the entrepreneurs. It is you who have given this policy flesh and blood and meaning. I assure you, my Ministry will continue to work closely with you all, to continue to energise and invigorate the national economy, so that our Prime Minister’s vision of double-digit growth is achieved sooner rather than later.
Thank you.
Press Information Bureau
Government of India
****
FTP Refers to Foreign Trade Policy, announced by the Commerce & Industry Minister on 31st August, 2004. It is a 5-year Policy (2004-2009), which provides a stable policy framework. The Annual Supplement 2005 to the Foreign Trade Policy (2004-09) was announced by the Commerce & Industry Minister on 8th April, 2005, and was effective from 1st April, 2005. The annual supplement 2006 announced by the Commerce & Industry Minister on 7th April 2006 is likewise effective from 1st April, 2006.
Exim Policy Refers to Export and Import (Exim) Policy. Exim Policy got incorporated into the comprehensive Foreign Trade Policy, which was announced by the Commerce & Industry Minister on 31st August, 2004.
DGFT Directorate General of Foreign Trade, which is headed by the Director General of Foreign Trade. The office of the DGFT is responsible for formulating and execution of Foreign Trade Policy, including licensing. Formerly (till 1991), was known as the Chief Controller of Imports & Exports (CCI&E).
EPZs/EOUs EPZ means Export Processing Zones which are special enclaves, separated from the Domestic Tariff Area (DTA), to provide an internationally competitive duty-free environment for export production. EOU means Export Oriented Units. The EOU scheme is complementary to the EPZ scheme, except that it is widely dispersed in location, unlike EPZs, which are set up at specific locations.
SEZ Refers to Special Economic Zones. Approval has been given for setting up of 117 Special Economic Zones as on 1st March, 2006 on the basis of proposals received from private/joint sector and from the state governments, of which 7 zones have since become operational. Incentives and facilities offered to units in SEZs for promotion of investment, including foreign direct investment, include duty-free import/domestic procurement of goods for development, operation and maintenance of SEZ units,100% income tax exemption for SEZ units under Section 10-AA of the Income Tax Act for the first 5 years, 50% for next 5 years and 50% of the ploughed back export profit for next 5 years, exemption from Central Sales Tax, exemption from Service Tax and single window clearance mechanism for establishment of units etc. Investment to the tune of about Rs.100,000 crore over the next 3 years in infrastructure development of SEZs and in setting up of units in the zones has been estimated on the basis of projections made by the promoters at the time of seeking approval for establishment of the SEZs.
FTWZ Free Trade and Warehousing Zone, a new scheme announced in the Foreign Trade Policy.
AEZs Refers to a scheme of Agricultural Export Zones. So far, 48 AEZs have been approved in 19 States by the Department of Commerce.
BTP BTP means Biotechnology Park as notified by Director General of Foreign Trade on the recommendation of the Department of Biotechnology
STP STP means Software Technology Park
E-Commerce Refers to electronic commerce. In the context of Foreign Trade Policy, e-commerce relates to electronic filing and processing of applications etc.
EPCG EPCG refers to the Export Promotion Capital Goods (EPCG) Scheme, which gives the manufacturer facility for import of capital goods for export production at concessional rate of duty (5 per cent) against certain level of export obligation over a period of time.
Duty Allows duty-free import of inputs for exports under Advance Licence,
Exemption Duty Entitlement Pass Book (DEPB) and Duty Free Replenishment
Scheme/Duty Certificate (DFRC) Scheme.
Free Import
of Inputs
Duty Credit Refers to import duty credit. For example, under the Focus Market Scheme, if an exporter exports to an identified country Rs.100 worth of goods, he will get 2.5% of Rs.100 on export of all products to the notified countries, which he can either use to pay customs duty on his imported inputs or sell in the market as these scrips would be freely transferable. Similarly, under the Focus Product Scheme, duty credit facility at the rate of 2.5% of f.o.b. value of exports on 50% of export turnover of notified products would be allowed.
Advance Advance Licence is granted for import of inputs without payment of customs
Licence duties. It is issued in accordance with the Policy and procedures in force and subject to fulfilment of time-bound export obligation. Such licences can be issued for import of inputs for use in the export production as well as for replenishment of the inputs already used in the export product.
DEPB Refers to the Duty Entitlement Pass Book to neutralise the incidence of basic customs duty on the import content of export product. This is provided by way of grant of duty credit against the export product at specified rates. The DEPB Scheme which was notified on 1/4/1997 consisted of (a) Post-export DEPB and (b) Pre-export DEPB. The pre-export DEPB scheme was abolished w.e.f. 1/4/2000. Under the post-export DEPB, which is issued after exports, the exporter is given a duty entitlement Pass Book at a pre-determined credit on the FOB value. The DEPB allows import of any items except the items which are otherwise restricted for imports.
Input-Output The norms which define the amount of input/inputs required to
Norms manufacture a unit of output.
DFRC Refers to the Duty Free Replenishment Certificate Scheme which was introduced from 1/4/2000 replacing Transferable Advance Licensing Scheme. The scheme is available to merchant exporters as well as to manufacturer exporters. However, it covers only items which are covered under standard input-output norms notified by DGFT.
Deemed Refers to those transactions in which the goods supplied do not
Exports leave the country and the payment for the goods is received by the
supplier in India.
FoB FoB means Free on Board -- i.e., when an exporter delivers goods "free on board", he pays all charges involved in getting them actually onto the ship.
NFE Refers to Net Foreign Exchange. Net Foreign Exchange earning is calculated as a percentage of exports (NFEP).
ISO-9000 Refers to international standards, laid down by the International Standards Organisation.
Manufacturer- Manufacturer-exporter means a person who exports goods
Exporter manufactured by him or intends to export such goods.
Merchant Merchant- Exporter means a person engaged in trading activities and
Exporter exporting or intending to export goods.
One to With a view to building marketing infrastructure and expertise required for
Five Star export promotion, exporters with certain level of export performance are
Export conferred the status of One to Five Star Export House.
House
Status An exporter recognised as One to Five Star Export House by DGFT/
Holders Development Commissioner for the purpose of benefits and facilitation.
Registration- Registration-cum-Membership Certificate (RCMC) means a certification
cum- of registration and membership granted to an exporter by an Export
Membership Promotion Council (EPC) or other competent authority.
Certificate
Value Value addition refers to the increment added in the process of
addition manufacture of a particular item, which also becomes part of its price.
QRs QRs mean Quantitative Restrictions. QRs refer to specific limits imposed by countries on the quantity or value of goods that can be imported or exported. QRs are non-tariff measures which are taken to regulate or prohibit international trade. QRs specifically refer to measures such as licensing requirements for exports/imports; quotas, ceilings etc.
ITC (HS) Refers to Indian Trade Classification (Harmonised System). It is a system of classification of products for the purposes of export and import.
VKUJ Vishesh Krishi Upaj Yojana, a new scheme introduced in the Foreign Trade Policy (2004-2009) as part of the package for agriculture.
SEPC An exclusive Services Export Promotion Council announced in the Foreign Trade Policy to map opportunities for key services in key markets.
CFS Container Freight Stations
EDI Electronic Data Interchange -- basically a trade facilitation measure. DGFT is committed to simplifying procedures relating to international trade and put in place an exporter friendly regime for obtaining import authorisations and disbursement of export-linked incentives.
******************
Press Information Bureau
Government of India
***
New Delhi: April 07, 2006
Exports have emerged as an increasingly important source of job creation in the Indian economy, according to the Report titled “Towards an Employment Oriented Export Strategies: Some Explorations”, completed by RIS (Research & Information System for Developing Countries) which was released by Shri Kamal Nath, Union Minister of Commerce & Industry, while announcing the Annual Supplement to the Foreign Trade Policy (2004-09) here this morning.
In his foreword to the report, Shri Kamal Nath says: “Employment generation is a very high priority in the National Common Minimum Programme of the UPA government. It is only with a conscious multi-pronged, multi-dimensional effort that we can address the massive challenge of finding job opportunities for millions of our unemployed youth, and export-oriented production has a huge potential for generating jobs”.
In 2004-05, the export sector is reported to have generated incremental direct employment of 1.4 million (i.e.14.85 lakh) over the previous year, bringing the total employment generated by the export sector in India to 9 million (i.e., 90.06 lakh) jobs, corresponding to exports amounting to nearly US $ 80 billion achieved during the year. This is besides the export-related indirect jobs created through backward linkages and in logistics and related sectors which are estimated to add up to another 6.9 million (i.e. 69.66 lakh) jobs. In all, merchandise export activity seems to sustain nearly sixteen million jobs currently.
Referring to the target of doubling exports to US $ 150 billion by 2009-10, the report says that “achievement of this target of exports is likely to generate 136 lakh new jobs (81.57 lakh direct and 54.61 lakh indirect) in the economy in the next five years”. The report further says that If India is able to exploit export opportunities in labour intensive goods and follow labour intensive modes of production, India’s merchandise exports in 2009-10 could reach US $ 165 billion which would generate 21 million (i.e. 210 lakh) new jobs (directly and indirectly).
The report identifies the following 12 export sectors as employment intensive:
þ Textiles & garments
þ Leather goods
þ Gems & jewellery
þ Cereal exports
þ Horticulture exports
þ Flowers, fruits and vegetables
þ Dairy products
þ Processed foods
þ Toys & sports goods
þ Pharmaceutical industry
þ Automobiles and auto components
þ Consumer electronics and electronic hardware
“The toy industry represents a classic case of a highly employment intensive industry with a sizeable international market of US $ 80 billion where India has failed to make a mark. The international market of toys is dominated by China which has a 75 per cent market share whereas India’s share is an appalling 0.4 per cent. This is an industry where India needs to make a determined effort to enter the world market”, the report says.
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Government of India
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TWIN SCHEMES OF FOCUS PRODUCT AND FOCUS MARKET INTRODUCED TO GIVE ADDITIONAL IMPETUS TO PENETRATION OF STRATEGIC MARKETS
VISHESH KRISHI UPAJ YOJANA EXPANDED TO INCLUDE VILLAGE AND COTTAGE INDUSTRIES
MASSIVE THRUST ON MAKING INDIA GEMS & JEWELLERY AND AUTOMOTIVE HUB
UNREBATED SERVICE TAX AND FRINGE BENEFIT TAX TO BE FACTORED IN VARIOUS SCHEMES FOR EXPORTERS
SUPPLIES TO INTERNATIONAL FLIGHTS TO BE TREATED AS EXPORTS TO MAKE INDIA MAJOR REFUELLING STOP
NEW DUTY FREE IMPORT AUTHORISATION SCHEME REPLACES DFRC
FLEXIBILITY IN EPCG FOR MAINTAINING AVERAGE EXPORT PERFORMANCE – FURTHER TWO YEARS EXTENSION OF EXPORT OBLIGATION FULFILMENT PERIOD AS FACILITATION MEASURE
INTEREST ON DELAYED PAYMENT ON REFUNDS TO BE PAID BY GOVERNMENT – FAST TRACK CLEARANCE PROCEDURES FOR EOUs – MAJOR TRADE FACILITATION MOVES
BOOST TO SERVICES EXPORTS
FOCUS ON EXPORT GROWTH AND EMPLOYMENT
New Delhi: April 07, 2006
Shri Kamal Nath, Union Minister of Commerce & Industry, today unveiled a series of important trade initiatives to put Indian exports on a trajectory of quantum growth and announced that India’s merchandise exports had crossed the magic figure of US $ 100 billion 2005-06. “In fact, they have touched US $ 101 billion, with an annual growth rate of 25%”, he said while releasing the Annual Supplement to the Foreign Trade Policy (2004-09) at a press conference here. Describing it as a ‘grand leap forward’ by India’s exports, Shri Kamal Nath mentioned that within just two years, India’s exports had jumped 60% -- from US $ 63 billion to US $ 101 billion. “The Foreign Trade Policy has served us well…. Merchandise trade in the very first year of the policy period (2004-05) grew at the rate of 26% and this year’s export figures are unprecedented”, he said.
Shri Kamal Nath announced the introduction of two new schemes to give a push to employment generation, particularly in semi-urban and rural areas – a key objective of the Foreign Trade Policy. These 2 schemes are: the “Focus Product Scheme” to give a thrust to the manufacture and export of certain industrial products which could generate large employment per unit of investment compared to other products; and the “Focus Market Scheme” to penetrate markets to which India’s exports were comparatively low and which Indian exporters had perhaps been neglecting due to high freight costs and undeveloped networks but which were markets of the future.
The Focus Product Scheme would allow duty-credit facility at 2.5% of the FOB value of exports on 50% of the export turnover of notified products, such as value added fish and leather products, stationery items, fireworks, sports goods and toys, and handloom & handicraft items. The Focus Market Scheme, on the other hand, allows duty credit facility at 2.5% of the FOB value of exports of all products to the notified countries. The scrip and the items imported against it for both these schemes would be freely transferable. These two Schemes would replace the Target Plus Scheme, the Minister said.
In order to take the benefits of foreign trade further to rural areas, the Minister announced that the Krishi Vishesh Upaj Yojana was being expanded to include village and cottage industries and was being renamed as the Vishi Krishi Upaj Aur Gram Udyog Yojana. Thus, it had been decided to incentivise export of village and cottage industry products by awarding a duty-free scrip at the rate of 5% of FOB value of exports under the expanded scheme, he said.
In another major initiative, Shri Kamal Nath announced that the incidence of unrebated Service Tax and Fringe Benefit Tax on exports would be factored in the various duty neutralisation and remission schemes, adding that details of this were being worked out and would be announced separately.
In order to promote services exports which account for 52% of India’s GDP, and provide jobs to a large number of urban educated youth, a number of features were being added in the Served from India Scheme to promote services exports, he said. “The Scheme will now allow transfer of both the scrip and the imported input to the Group Service Company, whereas earlier transfer of imported material only was allowed”.
Announcing a slew of measures to exploit India’s potential to become an international hub for gems & jewellery, Shri Kamal Nath said: “The diamond trade, which was concentrated in Antwerp, is moving out – to Dubai, to Tel Aviv. I want Mumbai be right up there, and not lose out to its fellow Asian cities. This Supplement now introduces a number of measures for facilitating export of value added products catering to changing needs of the market and facilitating easier product movement across the borders and allowing import of precious metal scrap for refining”. The measures include allowing import of precious metal scrap and used jewellery for melting, refining and re-export of jewellery; and reduction in value-addition norm on export of gold and silver jewellery from 7% to 4.5% in view of the increase of gold & silver prices in the international market in recent years which had made the present value-addition norms unrealistic.
In order to help India emerge as a hub of auto components, import of new vehicles by auto component manufacturers for R&D purposes would now be allowed without homologation (i.e. testing for fitness on Indian roads required for import of new models of cars) so as to give the sector easier access to latest technologies.
In order to tap the business opportunity in supplies of stores (food, beverages and other supplies) and refueling of long distance flights, it has been decided to treat such supplies on an equal footing with other exports, making them eligible for benefits under various export promotion schemes. This would enable India to offer competitive fuel prices and attract mid-route stops of international flights, the Minister said. Currently, most airlines replenish supplies or refuel at Thailand, Malaysia or Singapore since these supplies were not treated as exports in India.
Further, the salient features of the Advance Licensing Scheme (which allows imports of inputs before exports) and Duty Free Replenishment Certificate (which allows transfer of import entitlements) have been clubbed to launch a new scheme called “Duty Free Import Authorisation Scheme”. The rationale is that export production requires use of many inputs in small quantities as per the standard input-output norms, and though such inputs were allowed to be imported duty-free under the Advance Licence Scheme, exporters generally were not importing such items because of lack of economies of scale and were forced to source them locally at a higher price. The new scheme addresses the issue by offering the facility to import the required inputs before exports and allows the transfer of scrip once the export obligation is complete. The scheme will be effective from 1st May, 2006. Simultaneously, the DFRC scheme would be phased out and shall be available only for exports effected upto 30th April, 2006.
The Supplement introduces certain flexibilities in the conditions relating to maintenance of average export performance under the Export Promotion Capital Goods (EPCG) scheme as in a number of situations exporters were finding it difficult to maintain average export performance and undertake additional export obligations either because of sickness or international market dynamics or technology changes. Further, as an export facilitation measure, it has been decided to extend the period of export obligation fulfilment by a further period of two years based on certain condition.
As a trade facilitative measure, it has been decided that interest on delayed payment of refunds would be paid by the government to ensure accountability and cut delays. Further, fast track clearance procedures would be put in place for units of Export Oriented Units (EOUs) having turnover of Rs.15 crore.
Announcing major initiatives on the Electronic Data Interchange (EDI) or e-commerce front, Shri Kamal Nath said: “We are committed to simplifying procedures relating to international trade and putting in place an exporter friendly regime for obtaining import authorizations and disbursement of export linked incentives. A web based online system of filing import & export applications is functional. Requests for obtaining authorizations relating to Advance Licence, EPCG Licence and DEPB are to be filed on the DGFT website with a digital signature and payment of licence fee through the Electronic Fund Transfer mode. No manual applications and supporting documents are required to be submitted. All EDI applications are processed within one working day. We propose to take more EDI initiatives in the next six months to take the process further”.
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New Delhi: April 07, 2006
The Union Minister of Commerce & Industry, Shri Kamal Nath today announced special measures in the Annual Supplement to the Foreign Trade Policy which he said would help Indian gems & jewellery to sparkle on the world stage.
Giving details of the measures, he said:
(a) “We have large unutilized melting, refining and jewellery-making production capacity. To enable such capacities to be used in a productive manner, import of precious metal scrap and used jewellery will now be allowed for melting, refining and re-export of jewellery. However, such import will not be allowed through hand baggage.
(b) Gems & Jewellery exporters will now be allowed to re-import the rejected precious metal jewellery subject to refund of duty exemption benefits on the inputs only and not the duty on jewellery as was being done earlier.
(c) Many a times exporters faced the dilemma of unsold jewellery in the foreign markets because of changing designs and other such factors. To overcome this problem, Gems & Jewellery exporters will now, be allowed to export jewellery on consignment basis.
(d) Treatment of cut and polished precious and semi-precious stones enhance the quality and afford higher value in the international market. For this purpose, Gems & Jewellery exporters will now be allowed to export such items for treatment and subsequent re-import, within a period of 120 days.
(e) Increase of gold and silver prices in the international market over the past few years has made the present value addition norms on export of gold & silver jewellery unrealistic. The value addition norm for such items is being reduced from 7% to 4.5%”.
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GRAND LEAP FORWARD IN EXPORTS – INDIA’S MERCHANDISE EXPORTS TOUCH 101 BILLION DOLLARS : KAMAL NATH
New Delhi: April 07, 2006
The Union Minister of Commerce & Industry, Shri Kamal Nath today said that merchandise exports have crossed the ‘magic figure’ of 100 billion dollars and touched the ‘auspicious figure’ of 101 billion dollars. This has come on the back of over 25% growth in exports during each of the last 2 years, he said while unveiling the annual supplement to the Foreign Trade Policy.
“Our imports have grown 32%, and stand at 140 billion dollars – but 43 billion is our oil bill. Thus, our non-oil imports are 97 billion dollars, a full 4 billion lower than our exports. On the non-oil front, therefore, we have a positive balance of trade”, the Minister said.
Shri Kamal Nath further said that exports from many sectors have surpassed our expectations. “Project goods exports grew at the rate of 173%. Exports of non-ferrous metals, guar gum meal, computer software in physical form, rice, pulses, dairy products, all recorded a growth surpassing 50%. Commodities like man-made staple fibres, cosmetics and toiletries, iron-ore, coffee, processed food and transport equipment grew at the rate above the average, i.e. more than 25% during this period”, he informed.
“India is steadily increasing its share in important markets. Growth in exports to UK has been 30%, to Singapore (with which we implemented the CECA) 54%. India’s exports to South Africa grew at 44% while for China the growth rate is 35%. We shall be releasing detailed statistics on all this in the form of a Ready Reckoner next month, after exact figures come in”, Shri Kamal Nath added
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New Delhi: April 07, 2006
The Union Minister of Commerce & Industry, Shri Kamal Nath today announced that in the Annual Supplement to the Foreign Trade Policy, a number of new features have been added in the Served from India Scheme to boost Services Exports.
Giving details of the measures, he said:
1. “Services exports in Indian rupees, which are otherwise considered as having been paid for in free foreign exchange by RBI, will now qualify for benefits under the Served from India Scheme. In addition, the foreign exchange earned through International Credit Cards and other instruments as permitted by RBI for rendering of service by the service providers shall be taken into account for the purposes of computerisation of entitlement under the Scheme.
2. Benefits of the Scheme earned by one service provider of a group company can now be utilised by other service providers of the same group company including managed hotels. The measure aims at supporting the group service companies not earning foreign exchange in getting access to the international quality products at competitive price and providing services of international standards. This new initiative allows transfer of both the scrip and the imported input to the Group Service Company, whereas the earlier provision allowed transfer of imported material only.
3. Stand-alone restaurants will now be eligible for benefits under Served from India Scheme @ 10% of FOB value of exports (instead of the earlier 20%)”.
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New Delhi: April 06, 2006
Appropriate policy space must be an essential element of any modalities for negotiations in the World Trade Organisation (WTO) and its final outcome, Shri Kamal Nath, Union Minister of Commerce & Industry said here today at a Conference on “WTO and the Doha Round: The Way Forward”. Stressing that protection of the interests of millions of farmers was cardinal for India, the Minister said that in agriculture, “it remains central to our collective interests that the trade-distorting subsidies and protection provided by developed countries are eliminated so that a level playing field is established”. Agricultural tariffs remained the only instrument of safeguarding the food and livelihood security of our rural poor, he added. Mr. Pascal Lamy, Director General, WTO also participated in the inaugural session of the 2-day Conference which has been jointly organised by the Indian Council for Research on International Relations (ICRIER) and Sir Ratan Tata Trust (SRTT).
Shri Kamal Nath reiterated that while no one could disagree with Mr. Lamy’s call for urgency in the negotiations, the fact remained that mere urgency alone could not bring about a fair solution, and that developed countries must recognise the essential development character of the current negotiations and reflect this in whatever they were willing to commit to do. “Only then will we be in sight of a solution”, he stressed.
Outlining India’s priorities, Shri Kamal Nath said that in agriculture, for India as well as the developing countries in G-20 and G-33 effectiveness of instruments such as special products (SPs) and special safeguard mechanism (SSM) were absolutely vital. In any case, any tariff reduction formula would have to secure what members had already agreed namely, factoring in the different tariff structures of developing countries for thresholds and proportionately lower tariff reduction commitments for developing countries, which should be at least one-third lower than that for developing countries.
Similarly, in non-agricultural market access (NAMA), he stressed the principle of less than full reciprocity in reduction commitments for developing countries, pointing out that “just as SPs and SSM are a gateway issue in agriculture, I am convinced that para 8 flexibilities are a gateway issue in NAMA”. Flexibility provisions were a developmental necessity and could not be traded of against any other elements of the modalities, he added.
In services, he reiterated that for India satisfactory outcome in ensuring opening of sectors in cross border services (Mode 1) and movement of natural persons (Mode 4) were vital.
Mr. Lamy in his special address said the moment of truth was approaching in the Doha Round of negotiations, as the 150 member countries of WTO had agreed in Hong Kong to reach convergence on key numbers in 3 areas – viz., quantum of reduction of domestic subsidies in agriculture, quantum of reduction of tariffs on agricultural products and on industrial products – by 30th April 2006. “India’s offensive interests in the Doha Round cut across the entire negotiating agenda and are a sign of India’s insertion in a globalised world”, he said. India had a lot at stake in these negotiations give its interests across the entire negotiating agenda and given the dynamism of its economy, Mr. Lamy said.
Posing a question as to who would be the main losers from a failure of the Doha Round, Mr. Lamy answered the question as follows: “First would be the developing world, as the opportunity to redress the existing imbalances in multilateral trade relations will diminish. Were this round to fail, developing countries would pay the highest price. Next would be the smallest and weakest economies, for which the multilateral process acts as an “insurance policy” against the pressure exerted by the strong in bilateral trade accords. The biggest loser, however, would undoubtedly be the WTO, the system that has served the collective interests of 150 different members, and that has ensured a trade opening that is adapted to changing realities and that is based on a consensus between us all”.
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GOVERNMENT MOVING TOWARDS INTEGRATED FOOD LAW TO MAKE INDIAN FOOD INDUSTRY
GLOBALLY
COMPETITIVE – KAMAL NATH
EXPORT OF APEDA MONITORED
PRODUCTS GROW BY 15 %
KAMAL NATH GIVES AWAY APEDA ANNUAL AWARDS FOR 2004-05
New Delhi: April 6, 2006
The Union Minister of Commerce and Industry, Shri Kamal Nath has said that as food safety is a prime concern in the international trade in food products, the Government is moving towards introducing an integrated food law, which is expected to help meet the requirements of international trade and make the Indian food industry competitive in the global market. “The proposed legislation would aim at ensuring a proper management of the food safety system. It intends to set up a single line of command from the present multi-level and multi-departmental control. There will be a single reference point for all matters relating to food safety and standards, regulations and enforcements”, he informed. He was the chief guest at the 15th annual awards function of the Agricultural and Processed Food Products Export Development Authority (APEDA), here today.
Speaking on the occasion, Shri Kamal Nath said, “During the year 2004-2005 the total agro exports, including plantations and marine products, registered an increase of 7% over the previous year. I am glad that during the same period the export of APEDA monitored products grew by about 15%. However, our share in the global trade in agro products, which is presently 1.4%, is far below the potential in view of the fact that India possesses the largest area of irrigated land and we are the 3rd largest producer of food in the world”.
“In the present product patent era, Indian companies, particularly those which are engaged in the speciality areas like bio-technology and herbal products ought to work to expand their product portfolio through innovations. With possibilities to obtain product patents in India, MNCs should launch their patentable products for a growth driven by high value – low volume products. To harness the value-creating potential of agro processing, a superior market mechanism and infrastructure are required to be created. State governments should actively encourage the creation of aggregators by encouraging companies to engage in agriculture marketing. This could then provide the basis to jumpstart private investment into cold chain and other supply chain infrastructure. Exports of food products can become a valuable growth driver for the industry, leveraging the historic base, new specialty categories and other areas where India can build distinctive advantage and strong brands”, the Minister stressed.
The Chairman, APEDA, Shri K. S. Money informed that APEDA is working towards increasing the awareness about quality parameters and sanitary and phyto sanitary requirements of specific markets. APEDA’s contributions in introducing Residue Monitoring Plans for pesticide residues and veterinary drugs in various products, bringing out pre and post-harvest manuals, strengthening of quality control laboratories and accreditation of certification agencies for quality assurance systems and organically produced agro products have enhanced the acceptability of Indian agro exports in the world markets, he said.
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Shri Kamal Nath, Union Minister of Commerce and Industry, will announce the Annual Supplement to the Foreign Trade Policy here tomorrow.
Extensive consultations have been held with the trade and industry, including export promotion councils, chambers of commerce, trade associations and all other stakeholders particularly the Board of Trade, and their inputs taken into account in finetuning the elements of the Annual Supplement to the Foreign Trade Policy (2004-09).
The first-ever comprehensive Foreign Trade Policy (FTP) was announced by Shri Kamal Nath on 31st August, 2004 with a five year framework (2004-09), which took an integrated view of the overall development of India’s foreign trade with a two-fold objective of (a) doubling India’s percentage share of global merchandise trade by 2009; and (b) acting as an effective instrument of economic growth by giving a thrust to employment generation.
India’s merchandise exports since the announcement of the Policy in August 2004 have gone up significantly. During 2004-05, India’s exports reached US $ 80 billion. In the financial year 2005-06 also, exports are reaching the targeted levels at an accelerated pace.
The Annual Supplement to the Foreign Trade Policy to be announced by the Minister will be available on the Internet and can be accessed at the following website addresses: http://commerce.nic.in and http://dgft.delhi.nic.in as soon as it is released. In addition, the Foreign Trade Policy Annual Supplement etc., will be simultaneously available on the website of the Press Information Bureau (PIB) at: http://pib.nic.in
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New Delhi: April 05, 2006
Reiterating India’s commitment to safeguard its national interests in the current Doha Round of multilateral trade negotiations, Shri Kamal Nath, Union Minister of Commerce and Industry, has said that there will be no compromise on the interests of Indian agriculture or industry in the ongoing negotiations in the World Trade Organisation (WTO). During discussions with the visiting Director General of the WTO Mr. Pascal Lamy here today, Shri Kamal Nath made it clear that “while timelines or deadlines are important, this cannot be at the cost of the development content of the Doha Round which was launched with the aim of reducing global trade imbalances in favour of developing countries”. The discussions focussed on issues relating to agriculture and non-agricultural market access in the context of the 30th April, 2006 deadline mandated in the Doha and Hong Kong Declarations for finalisation of modalities for negotiations in these two important sectors.
“India is among the largest developing countries in the world where millions of rural people live on less than one dollar a day. Therefore, in agriculture, we have to ensure that the Indian farmer is able to participate effectively in the international market where at present prices are kept artificially low due to heavy subsidies given by developed countries. It must also be recognised that in India the issue is one of subsistence and agriculture is not commerce. Similarly, sensitivities of our domestic industry especially our small scale and infant industries must be addressed in the negotiations, bearing in mind that the developed countries took more than 50 years to bring their tariffs down so that their indigenous industry could reach where they are today. Our industry needs similar flexibilities”, Shri Kamal Nath said.
Mr. Lamy, during at his meeting with the Commerce & Industry Minister as well as at the stakeholder interaction held here this morning under the aegis of the Ministry of Commerce-UNCTAD project, pointed out that India had both defensive and offensive interests in the 3 key areas of negotiations, viz., agriculture, industrial tariffs and services. In agriculture, removal of trade distorting subsidies was an important issue for India while in non-agricultural market access also, India had strong offensive interests since the negotiations were aimed at addressing the issues of tariff peaks and tariff escalations against products of export interest to developing countries. India, therefore, had a large stake in the ongoing negotiations, he pointed out.
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New Delhi: April 5, 2006
The Union Minister of Commerce and Industry, Shri Kamal Nath has said that the Foreign Trade Policy initiatives of the Government are paying rich dividends which is evident from the fact that merchandise exports from India have touched 100 billion dollars, up from 63 billion dollars in 2004, that amounts to an increase of about 26% year on year, during each of the last two years. He was the Chief Guest at the 40th Convocation of the Indian Institute of Foreign Trade (IIFT) held here today. Shri S. N. Menon Chairman, IIFT and Secretary, Department of Commerce presided over the function and Shri Prabir Sengupta, Director, IIFT delivered the welcome address.
Addressing the graduating students, Shri Kamal Nath said, “our total economic engagement with the world today, including imports, tops 350 billion dollars, which reflects our growing significance in international trade. Our tariffs are coming down to ASEAN levels, our FDI regime is increasingly liberal, our domestic laws are TRIPS-compliant. But the barriers now in developed countries are more subtle – they are NTBs and SPS regulations: the non-tariff barriers to trade, often in the guise of health or environmental or social concerns are the new instruments of discrimination which we have to fight against. India's core concerns and interests have been addressed in the WTO Hong Kong Ministerial Declaration, with enough negotiating space for future work leading to modalities for negotiations in the coming months. The text has positive development content, but this needs to be built upon and fully realized. Government will continue to engage various stakeholders in each of the areas to ensure the best result which will fully protects our farmers, industry, and our overall national interests”.
“The on-going changes in world demography, with the greying of populations in the developed world – the workforce, not just labour, but the skilled and technologically qualified manpower - would come from developing countries. This is an opportunity for India, which in ten years will have a workforce (not population, but workforce) larger than even China. With a right blend of IT, biotech and pharma manufacturing, India could be the key destination for knowledge process outsourcing (KPO) and engineering process outsourcing (EPO) along with business process outsourcing (BPO)”, Shri Kamal Nath stated.
On this occasion, Director IIFT, Shri Prabir Sengupta announced that the IIFT Kolkata Centre will start functioning from July 2006 with start of the flagship MBA (IB) programme. "Another fresh initiative of the Institute is the setting up of SME Centre. As the SME sector continues to play a crucial role in our globalizing economy towards national development, the need for providing training and developmental activities specific to SMEs assumes importance. The Centre promises to provide continuous support by carrying out activities such as training programmes, provision of business intelligence services through a databank and act as a catalyst for interface with other concerned institutions”, he added.
This year at IIFT, there has been a very good response in campus placements. On the very first day of the placement week, the entire batch was placed, walking out with a record high annual domestic salary and international salary of Rs.10.55 lakh and US$ 100,000 respectively. The average domestic salary this year was Rs.8.1 lakh compared to Rs.7.28 lakh last year. A vast array of companies from different sectors like FMCG, Banking, Consultancy, IT, Pharmaceuticals, Trading and Logistics participated in the recruitment drive.
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New Delhi: April 04, 2006
Shri Kamal Nath, Union Minister of Commerce & Industry, will give away export awards of the Agricultural & Processed Foods Products Export Development Authority (APEDA) at a function here on 6th April, 2006.
The annual awards will be given by Shri Kamal Nath to exporters of agricultural and processed foods who have excelled in the areas of export promotion, market development, quality, Research & Development (R&D) and packaging development during the year 2004-05.
APEDA is engaged in the export promotion and development of fruits and vegetables and their products, meat & eat products, rice, wheat, floriculture & floriculture products, processed fruits and juices and several other miscellaneous agricultural products.
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KAMAL NATH TO INAUGURATE ICRIER CONFERENCE ON WTO DOHA ROUND ON 6th APRIL
New Delhi: April 04, 2006
Shri Kamal Nath, Union Minister of Commerce & Industry, will inaugurate an International Conference being organised by the Indian Council for Research on International Economic Relations (ICRIER) on “WTO and the Doha Round: The way Forward” here on Thursday, 6th April, 2006. The two-day Conference is proposed as a track-II event where leading international experts, academicians and negotiators will interact and brainstorm on issues relating to the current Doha Round of WTO multilateral trade negotiations in order to find a way forward.
The Conference, says ICRIER, comes just 3 weeks ahead of the April 30 deadline set for the ongoing negotiations by which time the modalities for negotiations on agriculture and non-agricultural market access (NAMA) are targeted for finalisation. The Conference will aim at eliciting views from leading academicians and negotiators so as to come up with ideas on negotiating modalities which would enable member countries to take the Doha Round forward, according to ICRIER.
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SINGAPORE TO DEVELOP SEZ IN INDIA
New Delhi: April 04, 2006
Singapore is actively considering developing a Special Economic Zone (SEZ) in India to bring in a large range of industries. This is indicated in the joint statement on the mid-term review of the India-Singapore Comprehensive Economic Cooperation Agreement (CECA), which was jointly conducted by Shri Kamal Nath, Minister of Commerce and Industry, on behalf of the Government of India and Singapore’s Minister for Trade & Industry Lin Hng Kiang on 31 March, 2006.
The Ministers agreed that the mid-term review provided both sides with an opportunity to consider both the implementation of the agreement to date and how it cold be further enhanced in order to provide an attractive and facilitative framework for businesses. Both Ministers endorsed the suggestion that teams from both countries should engage in discussions to follow up and improve on the CECA by 1 August, 2006.
The Ministers welcomed the interest of Indian and Singapore banks to expand in each other’s markets as banks play a critical role in facilitating trade and investments. Since the signing of CECA, Singapore has admitted both UTI Bank and Bank of Baroda. Singapore has also made an offer for the banking regulators from both sides to form a study team to consider Indian banks’ interest in obtaining a Qualifying Full Bank licence.
The Ministers noted that the Mutual Recognition Joint Committee would be meeting to continuing their work on the implementation of the mutual recognition agreements (MRAs) for electronics and electronic equipment, telecommunications equipment and egg products. Both countries also discussed a proposal from India on facilitating the entry of generic medicinal products.
Both India and Singapore were encouraged by the good progress made on the MRA on architectural services. India agreed with Singapore on the need to encourage the mutual recognition agreements pertaining to professionals MRAs for accountants, doctors, dentists and nurses to be concluded by 1 August, 2006.
Singapore and India discussed the value of fine-tuning the provisions of the Avoidance of double Taxation Agreement (DTAA) with a view to further encouraging investments. Singapore also noted that the increases in bilateral trade and outward investments in the year CECA was signed were the most significant among its FTA partners. Both sides agreed that there was immense potential for bilateral trade and investments to grow further.
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BIG TICKET JAPANESE INVESTMENTS IN PIPELINE – JAPANESE MINISTERS MEET ASHWANI KUMAR
New Delhi: April 03, 2006
Indo-Japan economic engagement is set for a major upswing with a slew of major Japanese investments in the pipeline. Big ticket investments in the pipeline include Overseas Development Association (ODA) to Metro projects in Delhi and Bangalore, Mitsubishi Chemicals Complex at Kolkata, Mitsui Logistics at Greater Noida, Suzuki Motors expansion, Yamaha Motor Project and Hitachi Construction Machinery Project. This was indicated in the meetings that the Minister of State for Industry, Dr. Ashwani Kumar had here today with Mr. Kiyohiko Toyama, Vice Minister (Parliamentary) for Foreign Affairs of Japan and Mr. Yoshio Yatsu, Chairman, Special Mission Committee on Free Trade Agreements.
During the meetings, which were a prelude to the forthcoming visit of the Prime Minister of India to Japan, Dr. Ashwani Kumar informed the visiting dignitaries that following the visit of Japanese small and medium enterprises (SMEs) delegation to India in February 2006, an investor guidance book is being prepared in Japanese language in cooperation with Japan External Trade Organisation (JETRO). A business delegation is also proposed to accompany the Prime Minister on his Japan visit to further strengthen business-to-business contacts, the Minister said. During the current financial year, a “Destination India” event is also proposed to be organised by the Japan Cell of the Department of Industrial Policy & Promotion (DIPP).
“In view of the raw material, packaging and human resource advantages offered by India, it has the potential to become food processing hub for the world. It is estimated that an investment opportunity of US$ 22 billion exist in this sector in India for the next 10 years. The sector is growing at a rate of about 20% domestically thus providing immense opportunities. It is estimated that the domestic processed food market will triple in next 10 years to about US$ 310 billion. The sectors which may witness sunrise growth are retail, processed milk, sugar, fruit, vegetable and marine products”, Dr. Kumar said.
Highlighting the immense possibilities for further economic collaboration between India and Japan in the manufacturing sector, Dr. Kumar informed the visiting dignitaries that India seeks to raise the percentage of manufacturing in its GDP and to increase growth in the manufacturing sector from 9% to 12 % in the next five years. He said that a mutually beneficial collaboration between the Japanese and Indian industry will be actively fostered by the Ministry of Commerce and Industry.
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DGS&D ENTERS
E-GOVERNANCE ERA
JAIRAM RAMESH LAUNCHES E-BIDS FOR DGS&D RATE CONTRACTS
New Delhi: April 03, 2006
Directorate General of Supplies & Disposals (DGS&D), under the Department of Commerce, Government of India, commonly referred to as ‘DGS&D’ and widely known for conclusion of ‘rate contracts’ today entered the era of e-governance with Shri Jairam Ramesh, Minister of State for Commerce, launching the live opening of e-bids for DGS&D rate contracts here this afternoon. This marks the computerisation of all of DGS&D’s major procurement and related-activities.
Shri Ramesh informed that this e-governance has 4 components: (1) e-purchase; (2) e-tendering; (3) e-inspection; and (4) e-payment. DGS&D initiated e-tendering as one of the components of its e-procurement platform to bring in transparency and to simplify tendering process, he added.
The total value of supply orders based on DGS&D rate contracts is valued at approximately Rs.3500 crore.*
The Government has directed that tenders issued by DGS&D for conclusion of rate contract for all items should be invited only through e-tendering with effect from April 1, 2006, which would ultimately reduce cost of procurement to both government and trade and industry, besides ensuring bigger participation of trade as even suppliers based in far flung areas can now submit their bids at the click of a mouse.
. E-tendering or online tendering is an electronic tool for the intending bidders to download the tender forms including the terms and conditions governing DGS&D contracts, fill them up and submit online and attend the opening of bids online – all in their own office premises.
It is as a part of this initiative that the a live opening of e-bids for conclusion of rate contract for energy efficient tube light fittings took place in the presence of Shri Jairam Ramesh in the DGS&D today.
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* Based on 2004-05 figures
DGS&D serves as many as 6000+ government users and about 10000 vendors spread across the country including in far flung areas.
Background
Directorate General of Supplies & Disposals, a central purchasing organisation under the Ministry of Commerce, started as India Stores Department in 1860 and emerged in its present form in 1951. Its present role is redefined in 1991 with a clear mandate to conclude Rate Contracts for common user items for the Department/Ministries of the Government of India.
Other important activities of DGS&D include Registration of Vendors; formulate procurement policies and procedures and cargo clearance at major ports including participation consultancy services.
The project to computerize all the activities of DGS&D was initiated in 2000-2001 with an estimated project cost of Rs.7.53 crore and completion by 2005-06. The project was later transformed into e-procurement, a major thrust area monitored by PMO. The e-procurement of DGS&D is also included as a Mission Mode Project (MMP) under the National e-Governance Plan (NeGP).
The project envisages an active website (http://dgsnd.gov.in) which gives out details of all tender notices; tender enquiries; rate contracts; technical particulars of stores; list of registered vendors; downloadable tender documents including conditions of contracts, forms, manual, etc; Citizen’s Character; information as per Right to Information (RTI) Act. The application software and website of DGS&D have been designed, developed and implemented by the National Informatics Centre, New Delhi.
Users (i.e., government departments) and vendors can access the application software through the “Indentor’s Page” and “Vendor’s Page”. Users can offer their suggestions online for bringing new items on rate contract; place supply order online; furnish receipt particulars online; after payment receive debits online. Vendors can apply for registration online; submit and receive inspection call online; furnish dispatch details and receive payment online.
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SB/NSD/MRS