Press release Nov2005

Shri Kamal Nath, Union Minister of Commerce and Industry, will be attending a Meeting of the G-90 – a grouping of ACP (African, Caribbean & Pacific) countries – in Brussels on 30^th November, 2005. The ACP countries have invited Shri Kamal Nath to address the gathering as a Special Invitee in the run up to the Hong Kong Ministerial Conference of the World Trade Organisation (WTO) scheduled to be held during 13-18 December, 2005. The ACP countries have also invited the US Trade Representative Mr. Rob Portman and the European Union (EU) Trade Commissioner Mr. Peter Mandelson to this important Summit.

The ACP countries consist not only of a large number of Least Developed Countries (LDCs) but also several small island states and single product vulnerable economy states. As a group of around 100 countries they are an important constituency in the WTO negotiations and solidarity with them is particularly important in the context of efforts being made by some developed countries to introduce a new categorisation of countries like India, Brazil, China and South Africa as “more advanced developing countries” with a view to bringing pressure on developing countries in the ongoing negotiations. India’s participation in the G-90 grouping is significant also from the standpoint of India’s traditional leadership role among developing countries.

Apart from addressing the G-90 Summit, Shri Kamal Nath will have bilateral meetings with Ministers of key African countries who will be there in large numbers in Brussels, where the ACP Secretariat is located.

Shri Kamal Nath is also scheduled to attend the meeting of the G-4 to be held in Geneva on 2^nd and 3^rd December, 2005. This will perhaps be the last meeting of the G-4 (EU, US, Brazil and India, the latter two as representatives of G-20) before the Hong Kong Ministerial Conference.

Shri Kamal Nath, Union Minister of Commerce & Industry, said here today that the tax regime should be further simplified to boost inflow of foreign direct investment (FDI) into India as well as exports. In his address as the Chief Guest at the Plenary Session of the India Economic Summit 2005 entitled “India: The New Paradigm”, Shri Kamal Nath said that the most striking feature was that economic reforms in India had been transformed from the crisis-driven, to success-driven. Furthermore, people had seen the process of reform not as something thrust on them from above, but as something to be welcomed, and long overdue. “I stress this point, because more than anything, it is this paradigm shift in public perception that is the greatest guarantee that the economic reform process is irreversible”, he said.

The Minister pointed out that: “Changing corporate strategies and production systems open new possibilities for developing countries to enter technology intensive and export-oriented activities they could not otherwise have undertaken, and become a part of the international production system. India intends to make full use of this opportunity. I believe that India has the potential to transform the world economy in the next two decades in the same way that America did in the last century, or that China has been doing for the past two decades. We are determined that India exploits this potential to the fullest”.

He mentioned that India’s capital markets had also played a significant role in creating growth impulses in the economy. In 2004, for example, Indian firms raised three times more capital from overseas money markets compared to 2000. FDI in India, though not as much as in China, had produced results 1½ times more productive, more effective. “We have now raised the bar of our GDP growth and are poised to enter into an 8 per cent growth trajectory”, he added.

The United Nations Conference on Trade and Development (UNCTAD), which has an important role to play as an agency for trade and development, should be strengthened and sustained in view of its institutional strengths and expertise built up over the years, Shri Kamal Nath, Union Minister of Commerce and Industry, told Dr. Supachai Panitchpakdi, Secretary General of UNCTAD when the latter called on him here this morning. Dr. Supachai was accompanied by Ms. Lakshmi Puri, Director, Division of International Trade in Goods, Services and Commodities, UNCTAD/Geneva. Shri Menon, Commerce Secretary, was present. Shri Kamal Nath suggested that UNCTAD should build up a global trade data-base which would attract countries to engage more with UNCTAD as an institution.

Dr. Supachai sought India’s support for UNCTAD in the context of the process of UN reform so that UNCTAD could emerge from this process as a more focussed and stronger organisation. Shri Kamal Nath agreed with Dr. Supachai that the test for UNCTAD in the coming years would be its capacity to deliver on its core activities such as research & policy analysis, and capacity & consensus building that would have the greatest possible impact on beneficiary countries. Dr. Supachai indicated that he had set up an Eminent Persons Group on trade and development issues. He also offered to organise an India Investment Policy Review on the lines of similar events organised for other countries, sometime next year.

Earlier, Dr. Supachai delivered the inaugural address at the “Pre-Hong Kong Ministerial Meeting Consultation Workshop: Identifying India’s Core Concerns”, jointly organised by the Ministry of Commerce & Industry and UNCTAD under the project ”Strategies and Preparedness for Trade & Globalisation in India”.

Shri Kamal Nath, Union Minister of Commerce and Industry, will address the Plenary Session of the India Economic Summit 2005 here tomorrow. He will be the Chief Guest at the Plenary Session entitled “India: The New Paradigm”.

The 3-day Summit (27-29 November, 2005) is being jointly hosted by the World Economic Forum (WEF) and the Confederation of Indian industry (CII).

Spread over 30 sessions, the summit will cover issues such as India vis-à-vis the world till 2025, agri-business, civil aviation sector, infrastructure development, the growing knowledge-based industries, financial services and Special Economic Zones (SEZs).

Shri Kamal Nath, Union Minister of Commerce & Industry, made a presentation on WTO issues before the Heads of Governments in Malta last evening. Shri Nath is representing India at the Commonwealth Heads of Government Meeting (CHOGM) 2005 at Valetta in Malta. Shri Kamal Nath was requested to make the presentation as he was the only Trade Minister present at CHOGM and hence, it fell on him to make a presentation on all World Trade Organisation (WTO) issues. His presentation was greatly appreciated and formed the basis of discussions on international trade issues at CHOGM.

The request for the presentation was made to Shri Nath in the backdrop of strong protests by the Prime Minister of Guyana as well as Prime Ministers of Jamaica and Barbados against the recent decision of the European Union (EU) on sugar which, they said, would adversely affect the interests of Caribbean countries and aggravate poverty. This set off a huge debate on the subject at CHOGM and all proceedings were stalled till the Prime Minister of Malta Dr Lawrence Gonzi as Chairman of CHOGM agreed not to issue the Communiqué of CHOGM being held in Malta from 25-27 November, 2005 till the last day of the Conference and also agreed to devote one entire day (half-day yesterday and half-day today) to discuss international trade and WTO issues. The presentation by Shri Nath on WTO followed thereafter.

Shri Nath had an informal meeting with Prime Minister Tony Blair on sidelines of the CHOGM and he also informally met John Howard Prime Minister of Australia; Ms. Helen Clark, Prime Minister of New Zealand; Mr. Shaukat Aziz of Prime Minister; Pakistan; Mr. Owen Arthur, Prime Minister of Barbados; and Dr. Navinchandra Ramgoolam, Prime Minister, Mauritius in Malta yesterday. He also had discussions at a Round Table with President Levy Patrick Mwanawasa of Zambia and President Yoweri Kaguta Museveni of Uganda and others.

Earlier, as part of India’s commitment to the Commonwealth, Shri Kamal Nath while addressing the CHOGM’s Executive Session announced a special contribution of one million Euros to support the Commonwealth Action Plan on the Digital Divide. The special theme of the Executive Session – “Networking the Commonwealth for Development” – was significant and timely, he said, as India had developed considerable expertise in the field of information and communication technology, which could be used effectively to address the developmental challenges of the people. Shri Nath further mentioned that India would be hosting the Commonwealth Games in 2010 in New Delhi and preparations had already commenced for the big event.

SB/MRS

Shri Kamal Nath, Union Minister of Commerce & Industry, has urged the Commonwealth countries to harmonise and reconcile their position in the World Trade Organisation (WTO) negotiations. In a significant intervention at a Round Table chaired by the Prime Minister of Malta on the occasion of the Commonwealth Heads of Government Meeting (CHOGM) at Valetta, Shri Nath pointed out that harmonised position was particularly important in view of the fact that the Commonwealth’s 53 member countries accounted for 40% of WTO’s membership, a third of the world’s population and about quarter of global trade and investment. “The importance of this group lies in the fact that its interests span a wide spectrum, including as it does developed, developing and least developed countries”, Shri Nath emphasised at the Round Table which was attended by the Prime Ministers of Mauritius & Barbados as well as the Presidents of Zambia & Uganda and as many as 30 top CEOs from all parts of the world last evening in the Presidential Palace of Malta. The CEO from India was Shri Rahul Bajaj, who is also the co-chair of the Commonwealth Business Council.

Later, addressing the Commonwealth Business Forum on the issue of “Strengthening National Economies through Global Businesses”, Shri Kamal Nath said that the topic was all the more relevant in the context of the WTO Ministerial Conference in Hong Kong which was just a few weeks away. He reiterated that development must be at the heart of the current Doha Round of multilateral trade negotiations. The Forum was attended by 300 top business delegates.

“It is not be accident that this round has been called the Development Round but by precise intent. A development round must seek to remove the distortions in international trade rules that inhibit the export growth of developing countries. The most profound structural distortions in international trade occurs in agriculture through huge domestic support and export subsidies that protect farmers in developed countries, even though agriculture accounts for less than 5% of output and employment in the US and EU. In contrast, two-thirds of all the poor people in developing countries depend on agriculture for their livelihood. In India, some 650 million people are dependent on agriculture. More than 90% of the cultivators are small and marginal with an average holding size of less than 2 hectares. They live on the edge of poverty and their income is barely one dollar per day”, the Minister said.

He stressed that these were not India specific issues. Similar situations prevailed in other developing country members of the Commonwealth and, therefore, it was imperative that the food and livelihood security and rural development needs of developing countries be treated as paramount in the WTO negotiations.

Similarly, in the area of industrial goods, he pointed out that developing countries have been autonomously liberalising their tariffs and investment policies. Here, in view of their sensitivities, the principles of less than full reciprocity in reduction commitments and special & differential treatment for developing countries must remain central to the non-agricultural market access (NAMA) negotiations, he said. “Without this flexibility, international trade would not be sustainable. While industrial collapse in developing countries would be fatal for the countries concerned, it would also be disastrous for their developed country trading partners”, he cautioned.

Later today, Shri Kamal Nath will be addressing the CHOGM 2005 Executive Session in the presence of the Queen.

Japan has approved India as a poultry meat supplying country without inspecting the plants in India. Japan’s Ministry of Health, Labour and Welfare (MHLW) has completed the evaluation of India’s standards for export of poultry meat and its products and has conveyed their approval to the Ministry of Commerce & Industry through the Embassy of India in Tokyo that Indian poultry meets Japanese standards. They will accept hygiene certificates issued by Government of India in this regard with effect from 13^th October, 2005. Effectively, this has opened the door for India’s poultry exports to Japan. “This is something that we have been pushing for the whole of last year”, Shri Kamal Nath, Minister of Commerce & Industry, said while welcoming the decision of the Japanese government. He had taken up the matter with the Japanese authorities during his visit to Tokyo in April this year.

Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) had conveyed the health requirements for poultry meat and its products to be exported to Japan from India through a communication dated 15 February, 2005. Thereafter, the Japan’s Ministry of Health, Labour and Welfare undertook the evaluation of India’s standards for export of poultry meat and its products, which has now been completed and conveyed their approval as meeting the Japanese standards. The only caveat in the Japanese government’s approval is that if standards are not properly implemented, they will stop accepting the hygiene certificate.

Necessary action has accordingly been initiated by the Ministry of Commerce & Industry (Department of Commerce) for commencement of poultry exports from India to Japan. They are informing the Agricultural and Processed Food Products Export Development Authority (APEDA) and the Export Inspection Division to coordinate efforts to facilitate exports of poultry to Japan.

Necessary action has accordingly been initiated by the Ministry of Commerce & Industry (Department of Commerce) for commencement of poultry exports from India to Japan. They are informing the Agricultural and Processed Food Products Export Development Authority (APEDA) and the Export Inspection Division to coordinate efforts to facilitate exports of poultry to Japan.

There is an urgent to diversify the basket of trade between India and Indonesia as this would help in expanding the bilateral trade by leaps and bounds, Shri Kamal Nath, Union Minister of Commerce & Industry, said while addressing the Indo-Indonesian Business Summit here this afternoon in the presence of Dr. Susilo Bambang Yudhoyono, President of Indonesia, Ministers from Indonesia and businessmen from Indonesia and India. Shri Nath mentioned pharmaceuticals, IT, two and three wheelers and rail transportation, as sectors which offered excellent scope for diversifying two-way trade as well as investment.

“Indonesia is our second largest export market in ASEAN (after Singapore) and one of our leading export destinations among developing countries. In a sense, Indonesia is our bridge to ASEAN. Last year our two-way bilateral trade increased by 35% over the previous year, to reach almost 4 billion dollars. Indian companies have invested more than 2 billion dollars in Indonesia. This is a marvellous example of South-South cooperation. In view of such positive indications, this is the time for us to seize the opportunity and take our economic engagement to an even higher trajectory”, he said.

Referring to the problem of non-tariff barriers, Shri Kamal Nath said: “There are some Non Tariff Barriers in the animal husbandry as well as non-agricultural sectors, which are currently hampering the trade between our countries. I have spoken to my colleague Ms. Pangestu about it and she has gracefully agreed to deal with these. I am sure that we will be able to surmount these problems and resolve them in the larger interest of our people”.

Shri Kamal Nath, Union Minister of Commerce and Industry, leaves tonight for Malta where he will be representing India at the Commonwealth Heads of Governments Meeting (CHOGM) scheduled to be held at Valetta on November 25-27, 2005. CHOGM is held once in two years at the level of Heads of Government (Prime Ministers/Presidents). Prime Minister Dr. Manmohan Singh is himself unable to go due to Parliament being in Session during that period and has asked Shri Nath to represent India at this important meeting which will be attended by Heads of Governments of Commonwealth.

The Special Theme of this meeting is “Networking the Commonwealth for Development”. Shri Nath is expected to make a statement at the Executive Session of CHOGM on 25^th November. He is expected to call on the Queen and also have a meeting with Prime Minister Tony Blair.

India attaches great importance to the Commonwealth’s fundamental values of democracy, rule of law and good governance. Some of these issues were discussed at the Commonwealth Asian Colloquium on Democracy and Development that was inaugurated by Dr. Manmohan Singh in New Delhi in August this year. CHOGM 2005 agenda will include review of global developments in the context of promotion of the Commonwealth’s fundamental values and outcomes of the UN 2005 Summit in terms of Millennium Development Goal (MDG); Development Issues; Sustainable Development; Gender Issues; Human Rights; Democracy; Migration and Development, Terrorism and Climate Change.

Shri Kamal Nath, Union Minister of Commerce and Industry, will be representing India at the Commonwealth Heads of Government Meeting (CHOGM) at Valetta in Malta on November 25-27, 2005. CHOGM is held once in two years at the level of Heads of Government (Prime Ministers/Presidents). Prime Minister Dr. Manmohan Singh is himself unable to go due to Parliament being in Session during that period and has asked Shri Nath to represent India at this important meeting which will be attended by Heads of Governments of Commonwealth.

India will not succumb to pressure from any country in the World Trade Organisation (WTO) negotiations, Shri Kamal Nath, Union Minister of Commerce and Industry, said at a meeting with the Left parties convened by him here on Saturday evening to discuss the strategy for the forthcoming Ministerial Conference of the WTO scheduled to be held in Hong Kong next month. Speaking to newspersons after the marathon 4-hour long session, the Minister underlined that he saw no difference in objectives with the Left in so far as protecting agriculture and industry were concerned, but said they did express concerns on how to achieve those objectives and assured that their concerns would be addressed. The government’s broad objectives, Shri Nath said, were: to protect the interests of the farmers and Indian agriculture; to safeguard the interests of domestic industry especially the small and medium scale enterprises and aim for gains in services where India had inherent strengths. The meeting – Shri Nath’s second with the Left within a month on WTO issues – was attended by Shri S. Ramachandran Pillai, Politbureau member, Communist Party of India (Marxist) – CPI (M); Shri D. Raja of the Communist Party of India (CPI); Shri S.P. Shukla, Adviser /CPI(M) on WTO Affairs; and Shri Manoj Bhattacharya, Member of Parliament, Revolutionary Socialist Party (RSP).

Responding to concerns expressed by the Left that India’s long-term interests are best served by making common cause only with developing countries and not issue-based alliances, Shri Kamal Nath explained that India was a coordinator of the G-20 group of developing countries as well as a founder member of the G-33, a group of 42 developing countries that was for pushing defensive interests in agriculture of countries like India. Besides, India was also working closely with the Africa Group, the ACP (Africa, Caribbean and Pacific ) countries and the Least Developed Countries (LDCs), he said, adding that he would be participating in the ACP Trade Ministers Summit in Brussels on November 30.

Among the issues raised by the Left was a suggestion to press for re-introduction of Quantitative Restrictions (QRs) on imports and for keeping health and education off the negotiating table as these came within the domain of public policy. They also cautioned against changing the basic architecture of GATS (General Agreement on Trade in Services) as it would dilute the policy space provided in the present agreement.

Shri Sharad Joshi, Member of Rajya Sabha and founder of Shetkari Sanghatana, has told Shri Kamal Nath, Union Minister of Commerce & Industry, that the government should allow foreign direct investment (FDI) in the retail sector especially in food processing and agriculture as it could transform the rural economy of India by generating economic activity and large scale employment in the country. Quoting extensively from his recent article titled “Why retail sector needs FDI” at a recent meeting of the Parliamentary Consultative Committee meeting of the Ministry of Commerce & Industry, Shri Sharad Joshi strongly refuted the argument advanced by some groups that FDI would not be conducive to employment. He pointed out that such arguments are often based on only data relating to floor staff employed in retail chains and no not take cognizance of its multiplier effect. “But if one also takes into account the jobs generated in a variety of connected and support activities – processing, construction, hardware, furnishing, packaging, data processing and management – supermarkets have a massive employment potential”, Shri Joshi said.

In response to Shri Kamal Nath’s point that the issue of FDI in retail was not that of Foreign versus Domestic, but essentially of the Big versus the Small, Shri Joshi said: “a nationwide retail network or, even better, a number of competing networks, will bring about an economic revolution and can deliver a body blow to the problem of poverty and unemployment. In several countries, this whole chain is well established and working well. It would be pointless for India to reinvent the wheel. So the key is FDI, accompanied by technological and management know-how. The opponents of supermarkets sing the glory of the corner-shops. (But) In fact, these shops score over the supermarkets by offering the consumer fresher products, a larger variety of foods and greater personal attention. But the supermarket has its own advantages, especially of scale. Also, it allows consumers to shop for everything, under one roof. So the supermarket and the corner-shop need to co-exist for the greater good of the consumer”.

Shri Joshi welcomed the Minister’s statement that FDI in retail could be beneficial for the food sector.

Members present were: S/Shri Sambasiva R Rao, Ramakrishan Bagida, Ram Singh Kaswan, Sudhangshu Seal, S. Rama Muni Reddy, Sharad Joshi and Shantaram Naiik. Shri E.V.K.S. Elangovan, Minister of State for Commerce & Industry, attended the meeting along with Shri S.N. Menon, Commerce Secretary; Dr. A.K. Dua, Secretary, Department of Industrial Policy & Promotion (DIPP) and other senior officials.

In a presentation made by DIPP at the meeting, it was indicated FDI inflows into India would be around US $ 7 to 8 billion annually if the international practices of FDI reporting are adopted. India has, since 1991, reported only the equity component. Reserve Bank of India (FDI) is currently compiling FDI data as per international practices.

Industrial growth during the first six months of the current financial year (April-September 2005-06) is up by 8.8% as against 8.3% registered in the same period last year. The growth rate in respect of manufacturing sector as a whole at 9.9% against 8.8% in the corresponding period last year is not only higher than the overall industrial growth but also the highest since 1997-98. Among the use-base economic sub-groups, ‘Capital goods’ have shown the highest growth rate of 17.6% during September, 2005.

As per the Quick Estimates of the Index of Industrial Production released by the Central Statistical Organisation, the industrial production grew by 7.3% during September, 2005 as compared to September 2004.

The growth of Industrial Production for the Mining, Manufacturing and Electricity sectors in September 2005 has been (-) 1.1%, 8.9% and (-)0.7%, respectively as compared to September 2004. The cumulative growth during April 2005 to September 2005 over the corresponding period of 2004-05 in the three sectors have been 1.3%, 9.9% and 4.8% respectively.

Sector	Growth Rate in Percentage
	Sept. 2004	Sept.2005	2004-05	2005-06
			(Apr.- Sept.)	(Apr.–Sept.)
Mining	5.1	(-) 1.1	5.1	1.3
Manufacturing	10.5	8.9	8.8	9.9
Electricity	7.7	(-) 0.7	7.8	4.8
Overall	9.8	7.3	8.3	8.8

India will not succumb to pressure from any country in the World Trade Organisation (WTO) negotiations, Shri Kamal Nath, Union Minister of Commerce and Industry, said at a meeting with the Left parties convened by him here last evening to discuss the strategy for the forthcoming Ministerial Conference of the WTO scheduled to be held in Hong Kong next month. Speaking to newspersons after the marathon 4-hour long session with the Left parties, the Minister underlined that he saw no difference in objectives but said they did express concerns on how to achieve those objectives and assured that their concerns would be addressed. The government’s broad objectives, Shri Nath said, were: to protect the interests of the farmers and Indian agriculture; to safeguard the interests of domestic industry especially the small and medium scale enterprises and aim for gains in services where India had inherent strengths. The meeting – Shri Nath’s second with the Left within a month on WTO issues – was attended by Shri S. Ramachandran Pillai, Politbureau member, Communist Party of India (Marxist) – CPI (M); Shri D. Raja of the Communist Party of India (CPI); Shri S.P. Shukla, Adviser /CPI (M) on WTO Affairs; and Shri Manoj Bhattacharya, Member of Parliament, Revolutionary Socialist Party (RSP).

Participating in the meeting of the Parliamentary Consultative Committee of the Ministry of Commerce and Industry here last evening, Shri Sharad Joshi, Member of Rajya Sabha and founder of Shetkari Sanghatana, told Shri Kamal Nath, Union Minister of Commerce & Industry, who presided over the meeting, that the government should allow foreign direct investment (FDI) in the retail sector especially in food processing and agriculture as it could transform the rural economy of India by generating economic activity and large scale employment in the country. Quoting extensively from his recent article titled “Why retail sector needs FDI”, Shri Sharad Joshi strongly refuted the argument advanced by some groups that FDI would not be conducive to employment. He pointed out that such arguments are often based on only data relating to floor staff employed in retail chains and no not take cognizance of its multiplier effect. “But if one also takes into account the jobs generated in a variety of connected and support activities – processing, construction, hardware, furnishing, packaging, data processing and management – supermarkets have a massive employment potential”, Shri Joshi said.

Shri Kamal Nath explained that the issue of FDI in retail was not that of Foreign versus Domestic, but essentially of the Big versus the Small, adding that the right model for India was yet to be evolved and the whole issue was under discussion. Answering this point, Shri Joshi said: “a nationwide retail network or, even better, a number of competing networks, will bring about an economic revolution and can deliver a body blow to the problem of poverty and unemployment. In several countries, this whole chain is well established and working well. It would be pointless for India to reinvent the wheel. So the key is FDI, accompanied by technological and management know-how. The opponents of supermarkets sing the glory of the corner-shops. (But) In fact, these shops score over the supermarkets by offering the consumer fresher products, a larger variety of foods and greater personal attention. But the supermarket has its own advantages, especially of scale. Also, it allows consumers to shop for everything, under one roof. So the supermarket and the corner-shop need to co-exist for the greater good of the consumer”.

Shri Joshi welcomed the Minister’s statement that FDI in retail could be beneficial for the food sector.

Members also suggested steps to further encourage exports of agricultural products from India as well as tobacco. Shri Kamal Nath said that he has taken up with the Russian authorities the issue of tobacco exports. He said 100% EOUs could also be set up for manufacture of cigarettes for export purposes only as this would help the tobacco growers.

In a presentation made by DIPP at the meeting, it was indicated FDI inflows into India would be around US $ 7 to 8 billion annually if the international practices of FDI reporting are adopted. India has, since 1991, reported only the equity component. Reserve Bank of India (FDI) is currently compiling FDI data as per international practices.

Till now, foreign investment was permitted in Terrestrial Broadcasting up to 20% under the Portfolio Investment Schemes under Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India)Regulations, 2000 and Foreign Direct Investment (FDI) was not permitted by foreign entities..

2. Government of India has recently announced Phase II of the programme for expansion of FM radio broadcasting services through private agencies to supplement and complement the efforts of the All India Radio by operationalising radio for providing programmes with local content and relevance, improving the quality of fidelity in reception and generation, encouraging participation by local talent and generating employment.

3. The Government has now decided to permit foreign investment, including FDI, NRI and PIO investments and portfolio investments up to 20% equity for FM Radio’s Broadcasting Services subject to such terms and conditions as specified from time to time by Ministry of Information and Broadcasting for grant of permission for setting up of FM Radio Stations.

Shri Kamal Nath, Union Minister of Commerce & Industry, has said that farmers interests will be protected at all costs in the WTO negotiations leading up to the Ministerial Conference of the World Trade Organisation (WTO) in Hong Kong next month. Addressing the Economic Editors Conference here today, Shri Kamal Nath underlined that India’s priorities in agriculture were a core area in the negotiations and the government was totally committed to ensuring that farmers interests are safeguarded. He said India’s priorities in agriculture included: maximum possible reduction of distorting subsidies given by developed countries; protection of the vast low-income, resource-poor and subsistence farming community in developing countries through proportionately lower commitments in market access as compared to developed countries; and Special Products (SPs) and Special Safeguard Mechanism (SSM) designed to safeguard food security, livelihood, and rural development needs of farmers.

Referring to India’s export performance, Shri Kamal Nath expressed the hope that India’s merchandise exports would touch the US $ 100 billion milestone during the this financial year 2005-06. “Exports during April-October (52 billion) 2005-2006 are 22% higher than last year. Exports during October 2005 are valued at US $ 8.1 billion which is about 28% higher than the level of exports during October, 2004”, he said.

“There has been a significant turnaround in India’s manufacturing sector. Manufacturing sector, which account for about 18% of India’s total GDP has registered a record double-digit growth of 12% during the first half of 2005-06. We attach great importance to manufacturing growth, as this sector has tremendous potential for generation of employment”, Shri Nath said.

The Minister said that procedures for export-import had been drastically simplified in order to reduce transaction cost. Under the consolidated application form called “Ayat Niryat” introduced w.e.f. 1/4/2005, the number of forms have been reduced from 20 to 1 and number of pages from 150 to 50. Time limits have been fixed for issue of various licences and all 33 DGFT offices have been computerized and networked.

SB/MRS

The South Asia region urgently needs to work out a coherent and comprehensive strategy for intensifying its efforts toward integration, Shri Kamal Nath, Union Minister of Commerce and Industry, said while addressing the SAARC Conclave, organized by the Federation of Indian Chambers of Commerce & Industry (FICCI) and the SAARC Chamber of Commerce & Industry, here this afternoon.

While noting that the signing of the Agreement on a South Asia Free Trade Area (SAFTA) two years ago at Islamabad Summit was a milestone and the culmination of clear commitment for the creation of a South Asian Economic Union, Shri Kamal Nath regretted that over 90% of the requirements of South Asian countries were still sourced from outside the region and conversely, a major part of the exports of South Asia were also destined for countries outside the group. “To make SAFTA a force to reckon with, a grouping that is respected the world over, and an Economic Union that is cherished by the common people of our countries, should be the goal towards which we should strive. We trust that the present tempo will be maintained and all these measures will be finalised before the target date set for implementing SAFTA”, he said. SAFTA is expected to come into effect from 1/1/2006.

The total intra-regional trade amongst SAARC countries is barely of the order of 7 billion dollars or so. It is a drop in the ocean (barely 2%) when compared to the total volume of our combined international trade of over 350 billion dollars, the Minister said.

India and Congo are considering steps to boost bilateral trade, which is not encouraging at present although there is a huge potential for two-way trade in the area of both goods and services. This was underlined by Shri Kamal Nath, Union Minister of Commerce & Industry and Ms. Adelaide Moundele Ngollo, Minister of Commerce, Republic of Congo, when the latter met Shri Nath with a delegation here yesterday.

Pointing out that the Focus: Africa programme of the government included Congo as a focus country, Shri Kamal Nath said that in order to boost trade, it was necessary to promote not only export of merchandise but also of services. “This may cover induction of professionals and skilled labour from India, support to Indian IT and construction companies to get contracts in Congo. Our first initiative has been to generate awareness of Indian products, which would boost bilateral trade”, he said, adding that India could share with Congo its experience and expertise in the development of small and medium enterprises (SMEs), agriculture, tourism, health etc.

From the Indian perspective, Republic of Congo offers a possibility of entering into its promising petroleum sector. The revenues generated by sustained high international prices of oil are also beginning to provide the country with resources to invest in a number of socio-economic developmental activities. This, in turn, creates a market for Indian exports. The country is also rich in minerals and other natural resources like timber. These, along with the energy sector, offer potential areas of participation for India.

At present, the two-way trade between India and Congo is a negligible US $ 106 million (2004-05).

Shri Kamal Nath, Union Minister of Commerce & Industry, has urged all member countries of the World Trade Organisation (WTO) to work hard to make the Hong Kong Ministerial Conference of the WTO a success and to work even harder to bring the current Doha Round of multilateral trade negotiations to a successful conclusion.

The following is the following text of the statement released by the Minister here last evening:

“The engagement by the members of WTO in the recent weeks has revealed lack of convergence in certain areas in the negotiations. Therefore, all of us have to work hard to make Hong Kong a success and even work harder to bring Doha Round to a successful conclusion.

This objective requires intensive negotiations and the understanding of each other’s position. Blaming one another only vitiates the atmosphere and is not conducive to constructive engagement.

SB/MRS

India’s exports during April-October 2005-06 are valued at US $ 51516.87 million ($ 51 billion) which is 22.08% higher than the level of US $ 42200.62 million ($ 42 billion) during April-October 2004-05. In rupee terms, the exports were Rs.225802.14 crore, during April-October 2005-06 which is 17.37% higher than the value of exports during April-October 2004-05.

Exports during October 2005 are valued at US $ 8082.70 million which is 27.54% higher than the level of US $ 6337.53 million during October 2004. In rupee terms, the exports were Rs.36225.04 crore, which is 24.85% higher than the value of exports during October 2004.

India’s imports during April-October 2005-06 are valued at US $ 75032.08 million representing an increase of 33.08% over the level of imports valued at US $ 56381.09 million in April-October 2004-05. In rupee terms, the imports increased by 27.89%.

Oil imports during April-October 2005-06 are valued at US $ 24915.06 million which is 44.51% higher than oil imports valued at US $ 17241.58 million in the corresponding period last year. Non-oil imports during April-October 2005-06 are estimated at US $ 50117.02 million which is 28.05% higher than the level of such imports valued at US $ 39139.59 million in April-October 2004-05.

Imports during October, 2005 are valued at US $ 11367.19 million representing an increase of 31.69% over the level of imports valued at US $ 8632.05 million in October, 2004. In rupee terms the imports increased by 28.91%.

The trade deficit for April-October 2005-06 is estimated at US $ 23515.21 million which is higher than the deficit at US $ 14180.47 million during April-October 2004-05.

Shri Kamal Nath, Union Minister of Commerce & Industry, said here today that the Special Economic Zones (SEZs) would be the centre of the strategy for India’s export growth and that a very attractive set of incentives had already been evolved for developers setting up SEZs in India as also for the units located within such zones. “We hope to soon put in place a specific legislation on Special Economic Zones which will consolidate and streamline all issues related to the SEZs”, the Minister said while addressing the Indo-US Economic Summit: Bridging the Gap, organised by the Indo-American Chamber of Commerce and the Indo-American US Economic Summit.

Emphasising the growing role of trade and the need to create trade related infrastructure, Shri Kamal Nath further said the government had decided to promote the setting up of Free Trade Warehousing Zones (FTWZs) where foreign direct investment (FDI) upto 100% would be permitted and which would get all the benefits available to SEZs. He reiterated that India had allowed FDI upto 100% in most activities under the automatic route, not requiring any prior approval.

“Besides many distinct advantages that India offers, the investor finally looks at the return of investment while making a choice for investment. As the existing investors would confirm, returns on investment in India is very good comparable with those prevailing in any other country. A recent survey of 500 foreign companies doing business in India has shown that as many as 77% of the foreign investors were making profits and another 9% were breaking even. (And the balance 14% are about to make profits!)”, he said. In this context, he highlighted the opportunities for investment in the infrastructure sector and said that at least 150 billion dollars would be required in the next 5 to 10 years to upgrade the infrastructure over the country such as highways and roads, power, sea ports, cities and telecom.

In a clear signal to the World Trade Organisation (WTO) ahead of its forthcoming Ministerial Conference next month, Shri Kamal Nath, Union Minister of Commerce & Industry, has said that the Ministerial Conference to be held in Hong Kong should be about development and not just ambitions. Addressing a Seminar on “Important Issues for India’s Negotiations in the WTO” organised by the Indian Council for Research on International Economic Relations (ICRIER), Sir Ratan Tata Trust (SRTT) and the Ministry of Commerce & Industry, here today, he said: “The central focus is to address developmental concerns of the developing countries while striving for fair and equitable trade. WTO is not only about free trade, but also very much about fair trade. The challenge in the Doha round is to deliver pro-development outcomes acceptable to all, which meets the aspirations of diverse group of countries”.

The Minister emphasised that India had been actively engaged in different fora such as the G-20 a group of alliance in the agriculture negotiation; the G-33 on Special Products and Special Safeguard Mechanism; the Core Group on Services; the Five Interested Parties (FIPs); and G-4 would continue to play a constructive, leadership role in pursuing its national interests. He also stressed that India was coordinating with all developing countries across the spectrum including the Least Developed Countries (LDCs). In this context, he warned that divisive attempts such as introducing a new classification of “advanced developing countries” could derail the round.

“The next few days are crucial in order to make progress. All efforts would need to be made to bridge the gaps in positions. The onus, however, remains on the developed countries to move and to meet the aspirations of developing countries”, he said.

The Seminar which covered various areas of WTO negotiations such as agriculture and non-agricultural market access, Services including distribution services and the retail sector, trade facilitation, anti-dumping and subsidies and Sanitary & Phyto-Sanitary (SPS) measures and Technical Barriers to Trade (TBT) was attended among others by Shri S.N. Menon, Commerce Secretary; Dr. Isher Judge Ahluwalia, Chairperson/ICRIER; Dr. Arvind Virmani, Director & Chief Executive/ICRIER; Shri Anwarul Hoda, Member, Planning Commission Shri B.K. Zutshi, former Indian Ambassador to GATT; Prof. B.N. Goldar of Institute of Economic Growth and Dr. Bibek Debroy.

India and Brazil have all the favourable conditions to develop a strategic economic partnership that will enable both of them to enhance their influence in the new globalised economic geography. This was underlined by the Governor of Sao Paulo Dr. Geraldo Jose Rodrigues Alckmin at an interactive luncheon meeting with Shri Kamal Nath, Minister of Commerce & Industry, organised by the Federation of Indian Export Organisation (FIEO) here today.

Addressing the meeting, Shri Kamal Nath pointed out India and Brazil were both large countries with social diversity and a large population base and the total trade between the two countries was US $ 1.4 billion during 2004-05. Of this, Sao Paulo accounted for nearly 46% of Brazilian exports to India and over 17% of Brazilian imports from India. He emphasised that India and Brazil were working closely in the G-20 alliance in the WTO agriculture negotiations. Both countries were also representing the G-20 in meetings of the G-4 and FIPs (Five Interested Parties) on WTO matters.

The Governor of Sao Paulo said that Brazil today had the world’s most competitive agri business centre. In fact, besides being big producer of fruits, Brazil had emerged also as the world’s largest exporter of beef and poultry, soya, orange juice, coffee and ethanol. “Brazil has an important presence in Latin America, and India has significative weight in Asia. We can take advantage of this potential to help increase our participation in both regional markets”, he said.

Shri G.K. Gupta, Vice President, FIEO, said today’s meet would offer excellent opportunities to businessmen of both countries to enhance trade and business in their respective regions.

India’s merchandise exports have registered a record growth of nearly 28% during the month of October 2005, reflecting the growing competitiveness of Indian exports in the international market, Shri Kamal Nath, Union Minister of Commerce & Industry, has said. India’s merchandise exports during October 2005 have crossed $ 8 billion, which is 27.54% higher than the level of US $ 6.3 billion during the month of October 2004.

Total exports during April-October 2005-06 amounted to almost US $ 51 billion representing a cumulative growth rate of over 22% in seven months over exports during April-October 2004-05.

Imports (excluding oil) during the same period (April-October 2005-06) amounted to US $ 50 billion. Oil imports during this period are valued at almost US $ 25 billion. Thus, excluding oil, the overall trade balance is surplus for India.

In his welcome address at the India International Trade Fair – IITF 2005 – which was inaugurated by the Prime Minister Dr. Manmohan Singh at Pragati Maidan here this morning, Shri Kamal Nath, Minister of Commerce and Industry, indicated that he was encouraging exporters to take India’s merchandise exports to a level of US $ 100 billion during the current financial year 2005-2006, even though the target set for the year was US $ 93 billion. Over and above this, India’s services exports this year could touch US $ 50 billion. “ If to this 150 billion dollars of exports, we add our 180 billion dollars of imports - (140 billion dollars worth of goods and 40 billion dollar worth of services) – India’s commercial engagement with the world this year will be in the region of 330 billion US dollars”, he added.

Stating that this is the silver jubilee year of the India International Trade Fair, Shri Kamal Nath said the Prime Minister’s presence at the Fair today was indicative of the importance being attached by the government to trade and commerce in the economic life of the nation. Welcoming the Chief Minister of West Bengal Shri Buddhadeb Bhattacharjee and the Chief Minister Shri N.D. Tiwari, the Minister said their presence underlined the potential embodied in their respective states to be in the forefront of the country’s developmental march and industrialisation initiatives. Shri E.V.K.S Elangovan, Minister of State for Commerce and Industry, was also present on the occasion along with Ms. Adelaide Moundello-Ngollo, Minister of Commerce of the Republic of Congo and Mr. Alkumin, Governor of the state of Sao Paolo in Brazil, besides the Commerce Secretary Shri S.N. Menon, Chairman/India Trade Promotion Organisation (ITPO) and many other dignitaries.

“Enhanced exports are the quickest way to increase employment in our urban, semi-urban and even rural areas. The IITF is a catalyst, an effective flagship medium in achieving our trade goals”, Shri Nath said

Shri Kamal Nath, Union Minister of Commerce & Industry, today called for doubling the merchandise trade between India and the United States to at least US $ 40 billion by 2008, thereby aiming for a target of doubling India’s economic engagement with the United States within 3 years. He underlined the huge potential for trade and economic cooperation between the two countries while addressing captains of the Indian industry along with Mr. Rob Portman, the US Trade Representative (USTR) at a meeting organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) here today. Currently, India’s total (merchandise) trade with the US is valued at US $ 21 billion (i.e. India’s exports to the US amounting to US $ 14 billion and India’s imports from the US amounting US $ 7 billion).

The Minister emphasised that one of the major obstacles in trade expansion were the Non-Tariff Barriers. “If we are able to sort out the Non- Tariff Barriers, there should be no difficulty in achieving targets howsoever ambitious”, he said. In this context, he said the first meeting of the Indo-US Trade Policy Forum (TPF), which was set up as part of an overall Economic Dialogue during the visit of the Prime Minister Dr. Manmohan Singh to the US in July this year assumed great significance. The meeting of the Trade Policy Forum which has a wide canvas covering mutual consultations on both bilateral and multilateral issues is scheduled to be co-chaired by Mr. Rob Portman and Shri Kamal Nath later today.

“The US is India’s largest trading partner and accounts for 11% of India’s trade (18% of India’s exports and 7% of India’s imports), but India accounts for only 1% of US total trade. While India’s exports to US are growing at 16% per annum, India’s imports from US are growing at 25% per annum. Whereas Indo-US trade is growing at a significant 20% per annum overall, this is still lower than India’s overall average rate of growth which is in the region of 25%”, Shri Kamal Nath said.

SENSITIVE ITEMS ACCOUNT FOR ONLY 3% OF INDIA’S TOTAL IMPORTS
IMPORT OF SENSITIVE ITEMS DURING APRIL-AUGUST 2005.

The total import of sensitive items for the period April-August 2005 has been Rs.6994 crore as compared to Rs.6646 crore during the corresponding period of last year, thereby showing a growth of 5.2%. The gross import of all commodities during same period of current year was Rs.237411 crore as compared to Rs.177411 crore during the same period of last year. Thus, imports of sensitive items constitute 3.7% and 2.9% of the gross imports during last year and current year respectively.

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

In the edible oil section, the imports have decreased from Rs.4288.65 crores last year to Rs.3586.70 crores for the corresponding period of this year. A significant feature of edible oil import is that import of crude oil has gone up by 24.7% and that of refined oil have gone down by 70.9%. The decline in edible oil import is mainly due to huge fall in import of RBD Palmolein and other Refined Palm Oil, which have gone down by 63% and 77% respectively.

Imports of sensitive items from Argentina, Brazil, China P RP, Benin, Cote D’ Ivoire, Korea RP, Guinea Bissau, USA, Egypt A RP, Ghana, Sri Lanka, Vietnam Soc Rep and UAE have gone up while those from Indonesia, Malaysia and Japan have shown a decrease.

Taking the lead in voicing the concerns of developing countries especially in agriculture, Shri Kamal Nath, Union Minister of Commerce & Industry, made it clear during greenroom discussions at the ministerial level in the World Trade Organisation (WTO) in Geneva as well as during the meeting of the G-4 plus Japan, hosted by India earlier this week in London, that there could be no agricultural market access package without full satisfaction on the issue of Special Products (SPs) and Special Safeguard Mechanism (SSM) as these two instruments were crucial for protecting the interests of farmers in developing countries. Special Products denote products of interest to developing countries which would be subject to only minimal or nil tariff reductions. Special Safeguard Mechanism is meant as a safeguard against surge in subsidised imports. Later, at an official level meeting of the G-33 – an alliance of countries on SPs and SSM – in Geneva yesterday, the Chinese representative indicated that China would work closely with India on SPs and SSM. Both India and China along with several other G-33 countries are also part of the G-20 alliance.

Meanwhile, the G-20 Ministerial press statement issued in Geneva last evening stressed that developed country proposals so far had not incorporated adequately Special and Differential (S&D) Treatment for developing countries. “The G-20 reaffirms that S&D is an integral part of all areas of the negotiations. In particular, SPs and SSM must be addressed with a view to a successful outcome in Hong Kong”, it said.

“We are at a crucial moment in the Doha Round. A month from the Hong Kong Ministerial Conference, we face huge gaps in negotiating positions. More disturbingly, signs of movement on the part of developed countries – mainly responsible for trade distortions and protection – have been scarce and insufficient. Additional movement in agriculture, in line with the Doha mandate and the July Framework, would find a response in terms of proportionate contributions in other areas of the negotiations. The challenges faced by all Members in the short time left up to Hong Kong is to work with realistic expectations without lowering the level of ambition of the Round. The G-20 is ready to face this challenge and urges all partners to do the same”, the statement added.

SB/MRS

Shri Kamal Nath, Minister of Commerce and Industry, has made it clear that the July Framework which had set out the principles and guidelines for the ongoing Doha Round of multilateral trade negotiations in the World Trade Organisation (WTO), is not up for re-negotiations and there is no question of it being re-opened as it addressed in a large measure the development issues of concern to developing countries. In three interventions at the key meeting of WTO Trade ministers in Geneva, the Minister forcefully made the point that the forthcoming Hong Kong ministerial conference of the WTO would be judged solely by how far it meets the development objectives of the Doha Round. Emphasising that level of ambition in the talks meant different things to different countries and that in India, agriculture meant survival, Shri Kamal Nath told the WTO members that “ in agriculture, in most developing countries where farmers were dependent on subsistence agriculture for their food and livelihood security, the real issue is how they can increase their daily income from just one or two dollars a day. For the farmers in developed countries engaged in corporate agriculture, the issue, on the other hand, is how their present levels of income can be protected by their heavily subsidised agricultural regimes”.

He strongly emphasised that for farmers in developing countries, tariffs were the only protection from subsidised imports and this level of protection would have to be continued, unless the heavy domestic support and export subsidies in the developed countries were completely eliminated.

The discussions in Geneva, in which nearly 20 ministers participated representing the larger membership of the WTO, ended inconclusively last night with the wide divergences in the various areas of negotiations including non-agricultural market access remaining as wide as ever.

In NAMA, Shri Kamal Nath was emphatic that there was no question of any harmonisation in tariff reductions and that the flexibilities for developing countries as provided in the framework must remain.

In a major initiative to safeguard the interests of farmers in developing countries including India, Shri Kamal Nath, Minister of Commerce and Industry, got the G-4 (which comprises the US, the European Union (EU), Brazil and India) as well as Japan to take on board the issue of greater specificity in respect of Special Products (SPS) and Special Safeguard Mechanism (SSM) in the agenda of the forthcoming Ministerial Conference of the World Trade Organisation (WTO) in Hong Kong. SPs and SSM are of great significance to India and the developing countries, as these are the two key instruments which would enable them to fully safeguard their farm interests in the WTO agriculture negotiations. SPs are products which would invite nil or minimum tariff reduction commitments, while SSM would safeguard against surge in subsidized imports. Addressing the meeting of G-4 hosted by India in London – which was also attended by Japan as a special invitee – Shri Nath insisted that there should be the same level of specificity in the matter of SP and SSM as in the other areas of agricultural negotiations and these could not be left till the end. For India, SPs should cover at least 15 % of the tariff lines, he said. He also urged members to give their suggestions on the proposal made in this regard by the G-33, a group of countries having defensive interests in agriculture so that the proposal could be carried forward.

The EU proposal for a single co-efficient for tariff reduction in non-agricultural market access (NAMA) was again rejected outright by India and Brazil, with both the two members of the G-20 stressing that there must be different co-efficients for the developed and developing countries, with flexibilities for their policy space intact as provided for in para 8 of the July Framework in order to be able to meet their development objectives.

On services, Shri Nath stressed the need for balance across all the 4 modes and rejected the concept of numerical benchmarking for opening of the services sector which, he said, would change the architecture of GATS and would not be acceptable to many countries. He also flagged the need to address other issues such as Rules, Anti-dumping, TRIPS and Public Health, TRIPS and Bio-diversity (CBD), Environmental goods and other implementation issues.

After the meeting, Shri Kamal Nath, along with Mr. Peter Mandelson, the EU Trade Commissioner, Mr. Robert Portman, US Trade Representative (USTR), Mr. Celso Amorim, Foreign Minister of Brazil and Ministers Nakagawa and Nikai from Japan who attended as special invitees, described the talks as constructive and useful. They thanked India for hosting this important meeting and said it had helped in understanding each others’ positions as well as the areas of divergence. Shri Nath said the discussions would be carried forward in Geneva on Friday with the wider membership of the WTO.

NEW TECHNOLOGIES AND ENERGY EFFICIENCY KEY TO
COST REDUCTION IN CEMENT MANUFACTURE
INTERNATIONAL SEMINAR ON CEMENT AND BUILDING MATERIALS BEGINS

Inaugurating the 9^th NCB International Seminar on Cement and Building Materials, here today, Dr. A.K. Dua, Secretary (Industrial Policy & Promotion), has said that the cost of cement manufacture can be brought down considerably by the rational and intelligent use of new technologies that have proved their mettle all over the world. The other aspect that can make a big difference in cost reduction of cement is the efficient use of energy at the manufacturing stage itself. He also aid that the industry has expanded its capacity to 163 million tonnes by the end of 2004-05, by meeting its entire domestic demand and also export orders to the tune of 10 million tonnes. He further said that this was helped India to become the second largest producer of cement in the world after China. He added that the industry needs to further concentrate on modernisation and upgradation of technology, optimisation of operations and increased applications of automation and IT so as to reduce the cost of production, enhancement of productivity and provision of clean environment.

“There is a need for improving the performance of not-so energy efficient plants with back up technology and R&D support. The Ministry has taken the initiative of identifying the technology gaps in cement plants set up prior 1990. The industry should come forward with concrete proposals so that the Ministry can formulate suitable policies to help the industry to implement the proposed schemes”, Dr. Dua said. He emphasised that the R&D has a major role to play in issues like handling, processing, quality control and environmental impact of the use of wastes, and added that cost reduction and quality enhancement to competitive levels are crucial importance in the context of present day of global scenario. Dr. Dua said that the cement industry should also look for overseas markets and establish strong global presence. At present, our country accounts for less than 7% of the global cement trade and exported less than 8% of the cement production, despite being the second largest producers, he said.

The 4-day (8-11 November) event is being organised by the National Council for Cement and Building Materials (NCB) in association with Ministries of Industrial Policy & Promotion, Power and Environment & Forest. Others who spoke on the occasion were: Dr. K. Mohan, Director General, NCB; Shri Manoj Gaur, Vice President, Cement Manufacturers’ Association; Shri N.L. Murthy, Joint Director, NCB and Shri S.C. Rastogi, Organising Secretary.

While delivering the keynote address, Dr. Mohan narrated the role of NCB in the last four decades including research and development with high quality team of engineers, scientists and other professionals. He said that the demand for cement is expected to grow by 8.4% to 9.8% on an annual basis over the next 5 to 7 years. He said that the NCB has also studied the potential for setting up of new green field cement projects in Northern Hilly regions and for infrastructurally under developed North-Eastern states through application of Geographical information systems and other advanced exploration techniques. He emphasised that the time has come for the industry to fully utilise the NCB’s capabilities and expertise to achieve higher levels of productivity and cost reduction in cement manufacture and increased use of cement in infrstructure and housing sectors. As regards the environmental improvement, he said the Indian cement industry has implemented a number of measures like state-of-the-art dust collection systems, extensive tree plantation around plants and mines, which could act as a carbon sink and reclaiming abandoned mines and turning them into water reservoirs, with rain water harvesting and recreation sites.

In his presidential address, Shri Majoj Gaur, said that the cement is the most vastly consumed man-made construction material and its utilisation is an important indicator of a country’s economic well-being. He underlined that the modern economic distribution systems, like bulk movement of cement and coastal transport are other options that the industry should increasingly resort to for effecting reduced loss in transit and pilferage, and at the same time conserving product quality. He further said that the natural resources were depleting at a faster rate and it is time to review the availability and utilise them rationally and conserve them for sustainable development.

15 DAYS PRIOR NOTICE FOR APPROVALOF SEZ PROJECTS

Proposals received for setting up of Special Economic Zones (SEZs) are considered by an Inter-Ministerial Committee known as the Board of Approval (BOA), in its meeting held every month. The promoters of the SEZs are also invited to such meetings to explain the salient features of their proposals and to furnish clarifications, wherever required.

Suggestions have been received from the concerned Ministries / Departments requesting for 15 days time for examination of the proposals. Accordingly, it has been decided that the proposals that have been received upto 15 days prior to the scheduled meeting of the Board of Approval, will be placed for its consideration and any proposals received thereafter will be considered in the next meeting.

The next meeting of the Board of Approval is scheduled to be held on 25^th November, 2005 and proposals for setting up of Special Economic Zones received till 11/11/2005 would be taken up for consideration in the proposed meeting.

In a significant bid to bring the current Doha round of WTO negotiations back on the development track, Mr. Kamal Nath, Minister of Commerce and Industry, has strongly emphasised that development must occupy the centre stage in the trade talks, as barely a month remains for the Ministerial Conference of the World Trade Organisation (WTO) and yet the real issues remained clouded or are being pushed into the background. In a letter addressed to trade ministers of the 148 member countries of the WTO, which he released at a news conference in London this afternoon ahead of a meeting of the G-4, he cautioned that the negotiations launched at Doha was called the “Development Round” and not a “Market Access Round” and hence, “our endeavour should be to ensure success at Hong Kong without glossing over the critical aspects- aspects which from the very basis of a Development Round or else there will be no success”. WTO is not about free trade alone, he stressed.

Underlining again that agriculture in developing countries like India is not commerce and criticising the demand of some members for “real” market access in agriculture, Mr. Kamal Nath said it undermined the policy space for developing countries and the agreement to make special and differential treatment for developing countries integral to all aspects of the negotiations, as a result of the Doha mandate and the July framework. They would also distract from the real need to ensure a level playing field for developing countries. “ Tariff reduction is not the only pre-condition for market access. For real market access to accrue, it is also necessary that export subsidies, domestic support and non-tariff barriers are eliminated”, he said.

He said India remained committed to the G-20 offer of 12^th October 2005, which called for proportionately lower commitments by developing countries than those by the developed countries, and full satisfaction on the effectiveness and operational content of Special Products (SPs) and Special Safeguard Mechanism(SSM) to enable developing countries to meet their food security, livelihood security and rural development needs, without restriction or limitation. Mr. Nath also welcomed the proposal of the African-Caribbean-Pacific (ACP) countries who had come forward with a generous offer despite their known capacity constraints.

On non-agricultural market access (NAMA), he expressed concern over some recent proposals suggesting norms for tariff reduction from applied rates, saying that these were totally extraneous to the mandate and again rejected any single co-efficient formula for developed and developing countries as a complete non-starter.

Commenting on the slow progress of the services negotiations, he noted that the architecture of the GATS (General Agreement on Trade In Services) provided flexibility to developing countries to undertake commitments in services according to their ability and needs, the Minister said the proposals based on quantitative targets on a one-size-fits-all basis was not acceptable.

Mr. Nath indicated that developing countries had sought amendments in the TRIPS Agreement to prevent bio-piracy of biological material and to prevent misappropriation of their traditional knowledge. “ We also need to ensure that the flexibilities that were agreed to for arriving at a decision to address public health issues in August 2003 are observed in letter and in spirit to deliver development goals, and for that we support an amendment in the TRIPS Agreement to bring in these flexibilities”, he said. Substantive progress must also be made on the constructive proposals put forward by developing countries on development and implementation issues, he said and urged that members agree on a special and differential (S&D) package for the least developed countries (LDCs), especially duty-free and quota-free access to LDC exports in developed country markets. He cautioned against “divisive” attempts to disrupt the basic structure of the GATT/WTO be creating a new category of WTO members called “ advanced developing countries”, which he said could derail the negotiations.

“Deadlines are important – but more important than anything else is to have a deadline to achieve development”, the Minister said.

1. In pursuance of the Government’s commitment to liberalise the FDI regime, it has been decided to enhance the Foreign Direct Investment ceiling from 49 per cent to 74 per cent in certain telecom services [such as Basic, Cellular, Unified Access Services, National/International Long Distance, V-Sat, Public Mobile Radio Trunked Services (PMRTS), Global Mobile Personal Communications Services (GMPCS) and other value added services], subject to the following conditions:-

A. The total composite foreign holding including but not limited to investments by Foreign Institutional Investors (FIIs), Non-resident Indians (NRIs), Foreign Currency Convertible Bonds (FCCBs), American Depository Receipts (ADRs), Global Depository Receipts (GDRs), convertible preference shares, proportionate foreign investment in Indian promoters/investment companies including their holding companies, etc., herein after referred as FDI, will not exceed 74 per cent. Thus, 74 per cent foreign investment can be made directly or indirectly in the operating company or through a holding company. Hence, the remaining 26 per cent will be owned by resident Indian citizens or an Indian Company (i.e. foreign direct investment does not exceed 49 percent and the management is with the Indian owners). It is clarified that proportionate foreign component of such an Indian Company will also be counted towards the ceiling of 74%. However, foreign component in the total holding of Indian public sector banks and Indian public sector financial institutions will be treated as ‘Indian’ holding. The licensee will be required to disclose the status of such foreign holding and certify that the foreign investment is within the ceiling of 74% on a half yearly basis.

B. The majority Directors on the Board including Chairman, Managing Director and Chief Executive Officer (CEO) shall be resident Indian citizens, enforced through licence agreement. The appointment to these positions from among resident Indian citizens shall be made in consultation with serious Indian investors. Serious investor has been defined below in para G(ii).

C. The Share Holder Agreements (SHA) shall specifically incorporate the condition that majority directors on the Board including Chairman, Managing Director and CEO shall be resident Indian citizens and shall also envisage the conditions of adherence to Licence Agreement.

D. FDI upto 49 per cent will continue to be on automatic route. Foreign Investment Promotion Board (FIPB) approval shall be required for FDI in the licensee company/Indian promoters/investment companies including their holding companies if it has a bearing on the overall ceiling of 74 per cent. While approving the investment proposals, FIPB shall take note that investment is not coming from unfriendly countries.

E. The investment approval by FIPB shall envisage the conditionality that Company would adhere to licence Agreement.

F. FDI shall be subject to laws of India and not the laws of the foreign country/countries.

G. Department of Telecommunications (DoT) will enforce the above and the conditions mentioned below through appropriate amendment in licence:-

(i) There shall be a non-obstante clause in the licence which confers powers upon the licensor to cancel the licence under certain defined circumstances.

(ii) In order to ensure that at least one serious resident Indian promoter subscribes reasonable amount of the resident Indian shareholding, such resident Indian promoter shall hold at least 10 per cent equity of the licensee company.

(iii) The Company shall acknowledge compliance with the licence agreement as a part of Memorandum of Association of the Company. Any violation of the licence agreement shall automatically lead to the company being unable to carry on its business in this regard. The duty to comply with the licence agreement shall also be made a part of Articles of Association.

(iv) Chief Technical Officer (CTO)/Chief Finance Officer (CFO) shall be resident Indian citizens. The Licensor/DoT shall also be empowered to notify key positions to be held by resident Indian citizens.

(v) The Company shall not transfer the following to any person/ place outside India:-

(a) any accounting information relating to subscriber (except for roaming/billing) (Note: it does not restrict a statutorily required disclosure of financial nature) ;

(b) user information (except pertaining to foreign subscribers using Indian Operator’s network while roaming); and

(c) details of their infrastructure/network diagram except to telecom equipment suppliers/manufacturers who undertake the installation, commissioning etc. of the infrastructure of the licensee Company on signing of non-disclosure agreement.

(vi) The Company when entering into roaming agreements with service providers outside India must provide, on demand, the list of such users (telephone numbers, in case of foreign subscribers using Indian Operator’s network while roaming).

(vii) The Company must provide traceable identity of their subscribers. However, in case of providing service to roaming subscriber of foreign Companies, the Indian Company shall endeavor to obtain traceable identity of roaming subscribers from the foreign company as a part of its roaming agreement.

(viii) No traffic (mobile and landline) from subscribers within India to subscribers within India shall be hauled to any place outside India.

(ix) No Remote Access (RA) shall be provided to any equipment manufacturer or any other agency out side the country for any maintenance/repairs by the licensee. However, RA may be allowed for catastrophic software failure (such as failure to boot up etc.) which would lead to major part of the network becoming non-functional for a prolonged period, subject to meeting the following conditions:-

(a) An identified Government agency (Intelligence Bureau) will be notified, when RA is to be provided.

(b) Remote Access password is to be enabled for a definite period only and only for access from pre-approved locations of the Original Equipment Manufacturer (OEM) Vendors and only for the equipments specifically under repair/maintenance.

(c) The control of Remote Access i.e. activation, transfer of data, termination etc. shall be within the country and not at a Remote location, abroad.

(d) The Government agency will be given all support to record the transactions for on-line monitoring.

(e) Any equipment or software that forms part of the overall monitoring shall not be permitted to have remote access under any circumstances.

(f) DoT will define appropriately the terms catastrophic software failure, major part of the network, and prolonged period used under this clause.

(x) It shall be open to the Department of Telecommunications to restrict the Licensee Company from operating in any sensitive area from the National Security angle.

(xi) In order to maintain the privacy of voice and data, monitoring shall only be upon authorisation by the Union Home Secretary or Home Secretaries of the States/Union Territories.

(xii) For monitoring traffic, the licensee company shall provide blind access of their network and other facilities as well as to books of accounts to the security agencies.

(xiii) In case of not adhering to Licence conditions envisaged in para G, the licence(s) granted to the company shall be deemed as cancelled and the licensor shall have the right to encash the performance bank guarantee(s) and the licensor shall not be liable for loss of any kind.

2. The conditions at para 1 above shall also be applicable to the existing companies operating telecom service(s) which had the FDI cap of 49%.

3. The relevant provisions of FDI policy for ‘investment companies’, as given in Press Note 2 (2000 series) dated 11.2.2000 issued by Department of Industrial Policy and Promotion will no longer be applicable to telecom sector.

4. An initial correction time of 4 months from the date of issue of this notification shall be allowed to the existing licensee companies providing telecom services mentioned in para 1 above for ensuring adherence to the aforesaid conditions. An unconditional compliance to the aforesaid conditions shall be submitted to the licensor within this period.

5. Press Note 15 (1998 series) and Press Note 2 (2000 series) issued by Department of Industrial Policy & Promotion stand modified to the above extent.

Department of Industrial Policy & Promotion, Ministry of Commerce & Industry

In recognition of its growing prowess as a preferred destination for high-end and scale neutral manufacturing, India has been invited as the Partner Country for Hannover Technology Fair 2006 (Hannover Messe 2006), the largest and most important tech event in the world, Shri Kamal Nath, Minister of Commerce & Industry, said while presenting the India Partner Country Hannover Fair Logo to the media here today.

“The invitation to become partner country at Hannover Technology Fair after a gap of 21 years, is in a sense the collective global recognition to Indian manufacturing and India’s growing economic significance in the world. It also signifies the strengthening of India’s economic relations with the European Union and especially with Germany”, the Minister said, adding that Germany is our largest trading partner in Europe and the fourth largest globally with annual bilateral trade close to US $ 7 billion.

Hanover Messe 2006 will take place from April 24, 2006 to April 28, 2006 and the display categories will be Process Automation (Interkama+), Factory Automation, Industrial Building Automation, Energy, Pipeline Technology, Subcontracting, Digital Factory, Industrial Facility Management & Services, Micro Technology and Market Research & Technology.

The Hannover Fair effort is being led by Ministry of Commerce & Industry with the Engineering Export Promotion Council (EEPC) coordinating participation and logistics, while the overall India branding and projection will be managed by India Brand Equity Foundation (IBEF).

The minister informed that India’s participation would be within three broad categories: Large, Medium and Small Private sector companies including those in manufacturing production, sub-contracting, industrial automation, etc.; Large Public Sector Undertakings including those in Defence, Oil & Gas, Power, Research and Development, etc.; and Departmental Projection including Science & Technology, Space, Non-conventional Energy Sources, etc.

A High-profile business delegation from India representing large, medium and small technology companies will be present at the Fair where India has taken close to 10,000 sqms of space, among the largest ever taken by a partner country.

Shri Kamal Nath also unveiled plans of a global campaign to project and promote ‘Brand India’ as a build-up to the Hannover Technology Fair, and also listed various other activities planned by India as the Partner Country, including the Indo-German Business Summit being organised by IBEF in partnership with BDI (Federation of German Industries), Indian business publications to be brought out by IBEF in German, sector-specific seminars being organised by EEPC, and Indian cultural performances to be organised by ICCR.

SB/MRS

SB/MRS

SB/MRS

SENSITIVE ITEMS ACCOUNT FOR ONLY 3% OF INDIA’S TOTAL IMPORTS IMPORT OF SENSITIVE ITEMS DURING APRIL-AUGUST 2005.

SB/MRS

NEW TECHNOLOGIES AND ENERGY EFFICIENCY KEY TO COST REDUCTION IN CEMENT MANUFACTURE INTERNATIONAL SEMINAR ON CEMENT AND BUILDING MATERIALS BEGINS

15 DAYS PRIOR NOTICE FOR APPROVALOF SEZ PROJECTS

Department of Industrial Policy & Promotion, Ministry of Commerce & Industry

SB/MRS

SENSITIVE ITEMS ACCOUNT FOR ONLY 3% OF INDIA’S TOTAL IMPORTS
IMPORT OF SENSITIVE ITEMS DURING APRIL-AUGUST 2005.

NEW TECHNOLOGIES AND ENERGY EFFICIENCY KEY TO
COST REDUCTION IN CEMENT MANUFACTURE
INTERNATIONAL SEMINAR ON CEMENT AND BUILDING MATERIALS BEGINS