Press Information Bureau
Government of India
****
SWEDEN KEEN ON MORE TRADE WITH INDIA
New Delhi: October 29, 2004
Sweden is keen to step up its trade and investment relations with India. This was conveyed by Mr. Kenneth Bertilsson, Consul General, Ministry of Foreign Affairs, Sweden, when he called on Shri Kamal Nath, Union Minister of Commerce & Industry, here last evening. He emphasised in particular that Sweden was keen to import more from India. The Minister agreed that there was scope for greater cooperation between India and Sweden in terms of both trade and investment, especially at the level of small and medium enterprises (SMEs).
Mr. Bertilsson indicated that his team had had useful discussions with their Indian counterparts both in Mumbai and Delhi in various sectors including information technology (IT) and "possible co-productions between the Swedish film industry and Bollywood". On his part, Shri Kamal Nath flagged some issues of concern to the Indian industry in Sweden, especially the issue of social security taxes and the long time taken for processing visas and work permits in Sweden from Indian businesses including IT professionals. The Swedish side assured to look into the matter raised by the Minister.
Bilateral trade between India and Sweden has shown impressive growth in the last five years. During the first 3 months of 2004-0, two-way trade has grown by almost 84%. Total trade in 2003-04 between India and Sweden was US $ 918.02 million, showing an increase of 32%. Of this, exports from India to Sweden were valued at US $ 218.05 million and imports by India from Sweden at US $ 699.97 million.
Both the sides have agreed to have a meeting of the Indo-Swedish Joint Commission early next year with participation of business representatives from the two sides.
***********
SB/PM/MRS
Press Information
Bureau
Government of India
***
New Delhi: October 29, 2004
The government has constituted the Grievance Redressal Committee in order to improve the efficiency of the Directorate General of Foreign Trade (DGFT) as a facilitator of India’s exports and imports. The setting up of the Committee is in pursuance of the announcement to this effect made by Shri Kamal Nath, Union Minister of Commerce & Industry, in the new Foreign Trade Policy on August 31, 2004. This new mechanism, Shri Kamal Nath has said, will facilitate speedy redressal of grievances of trade and industry which, he hoped, would substantially reduce prolonged and unnecessary litigations and foster a relationship of partnership between government and the trade and industry.
The three-member Committee, will be headed by Shri Gopal K. Pillai, Additional Secretary, Department of Commerce, Ministry of Commerce & Industry, as Chairman and Shri Rahul Khullar, Joint Secretary, Department of Commerce and Shri S. Jagadeesan, Joint Secretary, Department of Industrial Policy & Promotion (DIPP) as members.
The order issued by the Ministry of Commerce & Industry dated 27th October, 2004, says that the functions of the Committee will be: (a) to provide speedy redressal of grievances of trade and industry pertaining to non-statutory matters; and (b) to hear all grievances against decisions taken in the DGFT Headquarters. An important feature is that exporters can send all grievances to the Chairman of the Committee in electronic form besides other normal modes.
According to the proposal cleared by Shri Kamal Nath, the Committee will devise modalities for its functioning and will meet once every fortnight to attend to the grievances of exporters and importers.
Earlier, the resolution of 30th August, 2004 announcing the Policy had stated that: "DGFT has a commitment to function as a facilitator of exports and imports. The focus is on good governance, which depends on clean, transparent and accountable delivery systems. DGFT has in place a Citizen’s Charter which lays down its commitment to serve importers and exporters. It also gives time schedules for providing services to clients, and details of grievance committees at different levels".
***************
SB/PM/MRS
Press Information Bureau
Government of India
****
New Delhi: October 29, 2004
India and other developing countries will gain significantly from liberalisation of world trade in services in the negotiations in the World Trade Organisation (WTO). India has offensive interests in liberalisation of services as it has some comparative advantages which are not shared by other countries in the services sector. Export of services from India is growing 2.2 times faster than other export sectors. However, domestic reform priorities must inform liberalising commitments and these would constitute the defensive negotiating interests of India. These are among the major recommendations of the Consultation on the WTO July 2004 Framework: The Way Forward which was organised by the United Nations Conference on Trade and Development (UNCTAD) and was inaugurated by Shri Kamal Nath, Minister of Commerce & Industry, who had stated that this was first Consultation after the Framework was launched and he was happy to be kicking off the debate on the subject in the country. The recommendations were released by Ms. Lakshmi Puri, Director, Division of International Trade in Goods, Services and Commodities, UNCTAD/Geneva at a news conference here last evening. Shri Kamal Nath in his address had underlined the need for genuine agricultural reforms on the part of the developed countries and had also hoped for genuine liberalisation of the services sector and for a development-friendly non-agricultural market access (NAMA) Framework.
On NAMA, Ms. Puri said that the Consultation had noted that tariff peaks and tariff escalations in major markets for India had hindered its exports and therefore, these would have to be addressed. Further, adjustment cost to the industry following elimination of tariffs under NAMA could be significantly higher for certain products, in particular for small and medium enterprises (SMEs). Hence, flexibilities would be needed to address adjustment costs which would vary from sector to sector.
On agriculture, discussions emphasised the need to identify the "watch points", or concerns, of developing countries with respect to the upcoming negotiations on the modalities for agricultural liberalisation. In terms of offensive interests, it was necessary to clear up the backlog of liberalisation on the part of developed countries. On the defensive side, it was for developing country governments to maintain sufficient policy space in selecting measures to meet their long-term development goals.
In the agricultural market access, the concern of developing countries was the selection of tariff cut formula, which would achieve elimination of tariff peaks and tariff escalation in developed countries. The current ambiguity in the July Framework as regards tariff capping, and the introduction of sensitive products, suggested that developed countries would be trying hard to maintain high tariff barriers on their "sensitive" products, which coincided with range of products that exhibited tariff peaks. In order to restrain this flexibility, developing countries could request an exclusion of products of export interest to them from sensitive products of developed countries. There is a potential difficulty in selecting tariff bands, under a single approach with tiered formula, given the disparities in tariff structure (e.g. the distribution of bound tariff rates) among developing countries, the report says.
There was also a need to account for implications for export due to concessions in imports, and a need to look into the costs of securing market protection. Too much protection for developing countries could go against India’s export interests in the area of South-South trade. Less than 40% of India’s exports were destined to OECD countries, and most of post-UR competition for India was in developing country markets. Further, the report notes that what hinders India’s exports to OECD countries are sanitary and phytosanitary (SPS) measures and technical barriers to trade (TBT), which needs to be seriously addressed.
On Trade Facilitation, better management of trade and an enabling environment is required for promoting trade. However, some felt that this was an issue which could be implemented provided necessary technical assistance and capacity building is provided. Harmonisation of procedures should be sought through cooperation with agencies such as WCO (World Customs Organisation). There is a need to ensure certainty, uniformity and transparency in trade facilitation, the report adds.
***********
SB/MRS
Press Information Bureau
Government of India
****
New Delhi: October 28, 2004
India and other developing countries will gain significantly from liberalisation of world trade in services in the negotiations in the World Trade Organisation (WTO). India has offensive interests in liberalisation of services as it has some comparative advantages which are not shared by other countries in the services sector. Export of services from India is growing 2.2 times faster than other export sectors. However, domestic reform priorities must inform liberalising commitments and these would constitute the defensive negotiating interests of India. These are among the major recommendations of the Consultation on the WTO July 2004 Framework: The Way Forward which was organised by the United Nations Conference on Trade and Development (UNCTAD) and was inaugurated by Shri Kamal Nath, Minister of Commerce & Industry, who had stated that this was first Consultation after the Framework was launched and he was happy to be kicking off the debate on the subject in the country. The recommendations were released by Ms. Lakshmi Puri, Director, Division of International Trade in Goods, Services and Commodities, UNCTAD/Geneva at a news conference here this afternoon. Shri Kamal Nath in his address had underlined the need for genuine agricultural reforms on the part of the developed countries and have also hoped for genuine liberalisation of the services sector and for a development-friendly non-agricultural market access (NAMA) Framework.
On NAMA, Ms. Puri said that the Consultation had noted that tariff peaks and tariff escalations in major markets for India had hindered its exports and therefore, these would have to be addressed. Further, adjustment cost to the industry following elimination of tariffs under NAMA could be significantly higher for certain products, in particular for small and medium enterprises (SMEs). Hence, flexibilities would be needed to address adjustment costs which would vary from sector to sector.
On agriculture, discussions emphasised the need to identify the "watch points", or concerns, of developing countries with respect to the upcoming negotiations on the modalities for agricultural liberalisation. In terms of offensive interests, it was necessary to clear up the backlog of liberalisation on the part of developed countries. On the defensive side, it was for developing country governments to maintain sufficient policy space in selecting measures to meet their long-term development goals.
In the agricultural market access, the concern of developing countries was the selection of tariff cut formula, which would achieve elimination of tariff peaks and tariff escalation in developed countries. The current ambiguity in the July Framework as regards tariff capping, and the introduction of sensitive products, suggested that developed countries would be trying hard to maintain high tariff barriers on their "sensitive" products, which coincided with range of products that exhibited tariff peaks. In order to restrain this flexibility, developing countries could request an exclusion of products of export interest to them from sensitive products of developed countries. There is a potential difficulty in selecting tariff bands, under a single approach with tiered formula, given the disparities in tariff structure (e.g. the distribution of bound tariff rates) among developing countries, the report says.
There was also a need to account for implications for export due to concessions in imports, and a need to look into the costs of securing market protection. Too much protection for developing countries could go against India’s export interests in the area of South-South trade. Less than 40% of India’s exports were destined to OECD countries, and most of post-UR competition for India was in developing country markets. Further, the report notes that what hinders India’s exports to OECD countries are sanitary and phytosanitary (SPS) measures and technical barriers to trade (TBT), which needs to be seriously addressed.
On Trade Facilitation, better management of trade and an enabling environment is required for promoting trade. However, some felt that this was an issue which could be implemented provided necessary technical assistance and capacity building is provided. Harmonisation of procedures should be sought through cooperation with agencies such as WCO (World Customs Organisation). There is a need to ensure certainty, uniformity and transparency in trade facilitation, the report adds.
***********
SB/MRS
Press Information Bureau
Government of India
***
New Delhi: October 28, 2004
The government has constituted the Grievance Redressal Committee in order to improve the efficiency of the Directorate General of Foreign Trade (DGFT) as a facilitator of India’s exports and imports. The setting up of the Committee is in pursuance of the announcement to this effect made by Shri Kamal Nath, Union Minister of Commerce & Industry, in the new Foreign Trade Policy on August 31, 2004. This new mechanism, Shri Kamal Nath has said, will facilitate speedy redressal of grievances of trade and industry which, he hoped, would substantially reduce prolonged and unnecessary litigations and foster a relationship of partnership between government and the trade and industry.
The three-member Committee, will be headed by Shri Gopal K. Pillai, Additional Secretary, Department of Commerce, Ministry of Commerce & Industry, as Chairman and Shri Rahul Khullar, Joint Secretary, Department of Commerce and Shri S. Jagadeesan, Joint Secretary, Department of Industrial Policy & Promotion (DIPP) as members.
The order issued by the Ministry of Commerce & Industry dated 27th October, 2004, says that the functions of the Committee will be: (a) to provide speedy redressal of grievances of trade and industry pertaining to non-statutory matters; and (b) to hear all grievances against decisions taken in the DGFT Headquarters. An important feature is that exporters can send all grievances to the Chairman of the Committee in electronic form besides other normal modes.
According to the proposal cleared by Shri Kamal Nath, the Committee will devise modalities for its functioning and will meet once every fortnight to attend to the grievances of exporters and importers.
Earlier, the resolution of 30th August, 2004 announcing the Policy had stated that: "DGFT has a commitment to function as a facilitator of exports and imports. The focus is on good governance, which depends on clean, transparent and accountable delivery systems. DGFT has in place a Citizen’s Charter which lays down its commitment to serve importers and exporters. It also gives time schedules for providing services to clients, and details of grievance committees at different levels".
***************
SB/PM/MRS
Press Information Bureau
Government of India
***
New Delhi: October 26, 2004
Shri Kamal Nath, Union Minister of Commerce and Industry, has ruled out the possibility of trade-offs between agriculture and other areas of negotiations in the World Trade Organisation (WTO) negotiations, given the critical role agriculture sector plays in India’s economy. Inaugurating the three-day Consultation on the WTO Framework Agreement of July 2004: The Way Forward, organised by the United Nations Conference on Trade and Development (UNCTAD) here today, Shri Kamal Nath gave a clear indication of India’s approach in the post Framework WTO negotiations that are to commence shortly, particularly in the key areas of non-agricultural market access (NAMA) and services, besides agriculture. "We need to safeguard our concerns and identify our offensive interests, and our needs and priorities in these areas. We need to deliberate on what is suitable in the Indian context, what kind of ambition level we should have when we talk of taking on commitments and how to dovetail our ongoing autonomous policies and programmes in the context of the WTO negotiations. We need to assess what would help our business, trade and industry. The window of opportunity cannot be successfully exploited without concrete inputs of business, trade, industry and civil society in general", he said summing up India’s WTO strategy in the coming months. A lot of hard work would have to be done in the next 13 months so that something concrete could emerge by the time of the next WTO Ministerial in Hong Kong in December 2005, the Minister said, adding that he was delighted to be ‘kicking off’ the post-Framework debate in India today.
Shri G.K. Pillai, Additional Secretary, Ministry of Commerce & Industry; Ms. Lakshmi Puri, Director, Division of International Trade in Goods, Services and Commodities, UNCTAD/Geneva; Dr. Charlotte Seymour-Smith, Country Head/DFID; Dr. Veena Jha, Project Coordinator, UNCTAD-India; and a host of other experts in international trade from India and abroad along with senior officials of Ministry of Commerce & Industry participated in the inaugural session.
On Agriculture, Shri Kamal Nath said that there should be effective and substantial reductions in domestic support provided by developed countries to their farm sector, which distorted production and prices. He also called for setting an early date for complete elimination of export subsidies in any form, without resorting to the tactic of backloading the commitments or creating loopholes in the guise of food aid concerns. Agricultural subsidies in all OECD countries put together amounted to one billion US dollars a day, while a developing country like India was able to provide a meagre one dollar per month per farmer in the form of minimum agricultural support, he pointed out. The focus should be not just on market access into developing countries by getting them to lower tariffs but equal importance should be given to market access commitments by developed countries to ensure wider distribution of benefits for all the people. "When we speak of market access we should not talk only of tariffs, but also about how to deal with non-tariff barriers" as NTBs would assume greater importance than tariffs and quotas in the days to come, he said. Tariff negotiations should reflect "what we see as key features of the Doha mandate, namely ‘special & differential treatment’ and ‘less than full reciprocity’. If the intention is to have a formula that is aimed at harmonisation, then I am afraid that it will not wash – since harmonisation is only another name for getting developing countries to do more than developed ones – which is the exact opposite of S&DT and the ‘less than full reciprocity’ principle", he stressed.
Shri Kamal Nath said that flexibilities for developing countries would be important in the NAMA negotiations and these should address this specific development needs of all developing countries. Referring to the proposal on the table to bring down tariffs to zero by all countries – both developed and developing – in seven sectors of export interest to developing countries viz., fish products, leather, footwear, textiles, jewellery, electronic goods and auto components, Shri Kamal Nath said that while India welcomed the sectoral iniaitatives in view of the considerable scope for enhanced trade in these areas, he made it clear that participation in the sectoral initiatives must be voluntary and not mandatory.
Services would be an area of offensive interest for India, in view of her specific strengths and comparative advantages. India has already made its request for liberalisation in respect of Modes 1 and 4, adding that one of the few specifics in the July package was the last date for revised offers which had been fixed as May 2005.
Trade facilitation, the Minister said, would help in getting Indian exports facilitated in foreign ports, besides which, India had also been successful in introducing an entirely new element in the modalities, namely that of having an effective customs cooperation mechanism on issues relating to trade facilitation. Other development related issues like Implementation and Special & Differential Treatment provisions must also be thoroughly discussed, he said.
Shri Pillai said that the Framework Agreement of July was more well defined than the Doha mandate, but it didn’t contain the modalities i.e., the numbers and other details which were yet to be negotiated. Ms. Charlotte Seymour-Smith underlined the commitment of UK government to a good outcome for developing countries from the Doha Round and said there was a huge amount of work to be done before the Hong Kong Ministerial. She said UK would hold the presidency of EU and G-8 in 2005 and it would make trade a priority. Ms. Lakshmi Puri said the UNCTAD Trade and Development Board review recently identified the lessons learnt from Cancun and acknowledged the positive role of UNCTAD XI in consensus building and in ensuring an open and equitable multilateral trading system. The Framework Agreement, in UNCTAD’s assessment, signalled a revival of hope and a new kind of balance, whereby the developing countries interests would have to be taken into account for moving the Doha Round forward. The new geography of international trade involving developing countries had emerged, and the principle of assuring gains from trade for all developing countries had been recognised, she said. Dr. Veena Jha outlined the components of the Project on "Strategies and Preparedness for Trade and Globalisation in India" under the aegis of which the three-day Consultations are being held.
**************
SB/PM/MRS
Press Information
Bureau
Government of India
***
PRE-SHIPMENT INSPECTION OF SCRAP IMPORT MADE MANDATORY
PRESS NOTE
The Directorate General of Foreign Trade (DGFT) has issued Public Notice No. 18 dated 21/10/2004 on the import of metal waste and scrap in order to:
Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, New Delhi, dated 25th October, 2004
*******
SB/PM/MRS
Press Information
Bureau
Government of India
****
INDIA-MYANMAR
TRADE CAN BE DOUBLED IN TWO YEARS
KAMAL NATH RELEASES JOINT TASK FORCE REPORT
New Delhi: 25 October 2004
Bilateral trade between India and Myanmar can be doubled within two years, according to the India-Myanmar Joint Task Force Report which was released by Shri Kamal Nath, Union Minister of Commerce & Industry, here this evening. Shri Kamal Nath said that the various measures suggested in the Report, would, in other words, help in attaining the agreed goal of achieving US $ 1 billion worth of bilateral trade by 2006. He further said that the border trade between India and Myanmar had not achieved its full potential and that enhanced border trade was essential to step up the bilateral trade and economic cooperation. The Minister said that with a view to further accelerating border trade, the second point at Zowkhathar-Rhi, in addition to the Moreh-Tamu point, was inaugurated a few months ago and emphasised the need to speedily develop the required infrastructural facilities at this point so that the trade could take place at the earliest. Mr. Aung Thaung, Minister for Industry of Myanmar was also present at the launch of the Report, which has been prepared by the Confederation of Indian Industry (CII) and United Myanmar Federation Chamber of Commerce and Industry (UMFCCI).
Shri Kamal Nath informed that India has emerged as the largest export market for Myanmar, accounting for nearly 1/4th of Myanmar’s exports. It has also become Myanmar’s fourth largest trading partner, he said. The Minister indicated that the government had formulated a series of policies aimed at developing the industrial potential of the North East region. "Most of this is in the form of roads, airports, power, railways, telecommunications, banking and finance. We have also formulated a policy for concessional freight tariffs for movement of goods. These factors make the North Eastern region a natural base for exports to and imports from Myanmar", the Minister said.
Pointing to the negative balance of trade with Myanmar, Shri Kamal Nath said that India did not wish any artificial balancing of trade but was looking for a genuine expansion exploiting the full potential of trade between the two countries. He highlighted India’s excellence in IT, medical equipment, pharmaceuticals, engineering products and electrical equipments and said that India was willing to export expertise in the services sector, which included hospitals and healthcare. He complimented CII and UMFCCI for the preparation of this significant report and said that it would provide insights into business opportunities to entrepreneurs from both countries and a useful starting point for the generation of both ideas and information.
Shri Kamal Nath later met Mr. Aung Thaung, Minister for Industry, Myanmar and discussed issues relating to bilateral trade and economic cooperation.
*************
SB/PM/MRS
Press Information Bureau
Government of India
****New Delhi: October 21, 2004
Investment, both domestic and foreign, is critical for sustained economic growth and poverty reduction. Developing a business environment conducive to attracting investment and to maximise its contribution to economic and human development require the forging of effective partnerships of all kind-between developing and developed countries, between home and host countries, between governments, business and civil society and between regional and international organizations. Progress towards the Millennium Development Goals can be helped by such partnerships, which constitute a means of realising complementarities, synergies and cross-fertilisation. These are some of the key messages from the 2-day OECD Global Forum on International Investment (GFII), which concluded here today. The GFII was organised by the Government of India, Organisation for Economic Cooperation and Development (OECD) and Confederation of Indian Industry (CII), which was inaugurated by Shri Kamal Nath, Union Minister of Commerce & Industry.
Another finding of the Forum was that Official Development Assistance (ODA) alone will not be sufficient to meet the Millennium Development Goals. Private investment - domestic and foreign - is key to growth and poverty reduction. ODA can play an important role by acting as a catalyst for investment. Investment cannot act as a substitute for ODA; to achieve the hoped-for results an adequate quantity and quality of ODA is prerequisite.
Corporate responsibility has emerged as an important issue and a key component of international cooperation in the investment field, the Forum said. Integrating corporate social responsibility in the agenda pays off in the longer run, notably in terms of increased competitiveness and more harmonious relations with governments and communities. The participants welcomed the suggestions by Indian business and civil society representatives to organise roundtables to exchange experiences on corporate responsibility between multinational and national enterprises.
The next GFII for 2005 and 2006 would be hosted by Brazil and Turkey respectively, the Forum decided.
************************
SB/PM/MRS
Press Information Bureau
Government of India
***KAMAL NATH CONSULTS POLITICAL PARTIES ON PATENTS AMENDMENT
BILL ON THIRD AMENDMENT IN WINTER SESSION
New Delhi: 20 October, 2004
Shri Kamal Nath, Minister of Commerce and Industry, has initiated consulations with political parties on the Patents (Third Amendment ) Bill and as part of this consultative process, he held discussions here today with Shri Arun Jaitley of the Bharatiya Janata Party (BJP), Shri Yerran Naidu of Telegu Desam, Shri Sukhdev Singh Dhinds of the Shiromani Akali Dal (SAD), Shri Ajit Kumar Singh of Janata Dal (United) and Shri W. Wangyuh of Nagaland Peoples Front. Shri Kamal Nath had earlier interacted with the left parties, including Shri Basudeb Acharya of CPI (M) and Shri Joachin Baxla of the Forward Bloc, on the subject. The Minister indicated in response to suggestions by political parties that the Bill would be introduced in the beginning of the winter session of Parliament and assured that the proposed third amendment would fully take into account the public interest including public health concerns, making full use of the flexibilities available in this regard in the WTO Agreement on Trade-Related Intellectual Property Rights (TRIPS). There was a general consensus among participants on the need to meet the international commitment of adhering to the deadline of 1 January 2005 for introduction of product patents through legislation, while ensuring that mechanisms are put in place to safeguard public access to medicines at affordable prices.
Shri Kamal Nath said that given the importance of the issues, he was keen to have broad-based and extensive interactions with political parties as well as different interest groups on critical aspects of the required changes to the Indian Patents Act, 1970.
In pursuance of the TRIPS Agreement negotiated during the Uruguay Round, the Patents Act, 1970 was first amended in March 1999 to introduce the transitional (mailbox) facility from 1/1/1995 to receive and hold product patent applications in the fields of pharmaceuticals and agriculture chemicals till January 1, 2005. The second amendment to the Act was made in June 2002 to meet obligations under the TRIPS Agreement relating to modifications in the provisions concerning term of patent protection, rights of the patentee, compulsory licensing etc. The third amendment required to meet obligations under the TRIPS Agreement that are due from 1st January 2005 relate mainly to introduction of product patent protection in all fields of technology.
***************
SB/PM/MRS
Press Information Bureau
Government of India
***New Delhi: October 19, 2004
Shri Kamal Nath, Union Minister of Commerce and Industry, today invited ASEAN companies to invest more in India, pointing out that the total flow of foreign direct investment (FDI) into India from the ASEAN countries during the last decade has been around US $ 4 billion, but this has been restricted mainly to free countries, namely, Malaysia, Singapore and Thailand. Addressing the Plenary Session of India-ASEAN Economic Partnership, Shri Kamal Nath underlined that trade and investment were the twin basic building blocks of the India-ASEAN relationship and said he was happy that ASEAN companies were participating in India’s ambitious infrastructure development programme. "We have accorded infrastructure development the highest priority. We estimate that we would require an investment of 150 billion dollars over the next five years – 75 billion in power, 25 billion in telecom and 50 billion in airports, seaports and roads… In addition to investments, we also welcome technological inputs in the modernisation and expansion of our infrastructure and industry", he said.
Referring to the Bill to be introduced in Parliament on Special Economic Zones (SEZs), Shri Kamal Nath pointed out that the Bill would cover Bio-technology Parks and Free Trade and Warehousing Zones and in all these, FDI upto 100% would be permitted, including in the real estate development and establishment of the Zones. "We see the Special Economic Zones as hubs of manufacturing and Free Trade and Warehousing Zones as trading hubs", he said. He also underlined the potential of India’s telecom sector as well as India’s manufacturing skills in precision and high-tech sectors such as high quality auto components.
Regarding the Framework Agreement on Comprehensive Economic Cooperation between India and the ASEAN aimed at an eventual Free Trade Area covering trade in goods, services and investment within a fixed time frame, Shri Kamal Nath said: "We have been making concerted efforts to give the finishing touches to our Early Harvest Programme consisting of an agreed common list of items for tariff concessions on a fast track basis, and also other areas of economic cooperation. At Jakarta we made a commitment to complete negotiations swiftly on the EHP and bring into force from 1st January, 2005 since we see it not only as a confidence building measure but also as a commercial instrument which will bestow upon all of us a substantial level of economic benefit, and would be a precursor of things to come".
**********
SB/PM/MRS
Press Information Bureau
Government of India
***New Delhi: October 19, 2004
Shri Kamal Nath, Union Minister of Commerce & Industry, has said that India’s investment policies, including policies on foreign direct investment (FDI), are among the most liberal in developing economies. While inaugurating the OECD-India Investment Roundtable here today, Shri Kamal Nath said there were no restrictions on FDI in most sectors in India and the Indian government welcomed foreign direct investment. "What we really want is FDI that generates the maximum economic activity, and, thereby creates employment, that creates wealth for ordinary people…. We especially look to FDI in manufacturing sectors and in greenfield projects", the Minister said. Mr. Richard Hecklinger, Deputy Secretary General, Organisation for Economic Cooperation and Development (OECD) and Shri Sunil Kant Munjal, President, Confederation of Indian Industry (CII) were present at the inaugural function along with members of the diplomatic corps and representatives of trade and industry.
Shri Kamal Nath said that the medical expertise and para-medical skills available in India made it an ideal place for pharmaceuticals and clinical research. "Our Patent Law is currently fully TRIPs-compliant. Our obligations require that we provide for product patent protection with effect from 1st of January next year. We shall do it", the Minister said. He indicated that India would become one of the largest economies in the world over the next two decades and establishing a strong presence in India, therefore, would be a strategic necessity for business corporations.
Shri Kamal Nath said that overseas investments by Indian companies had exceeded $ 3 billion in the last two years, with nearly 60% in the manufacturing sector. He underlined India’s telecom sector as one of the fastest growing in the world today, with the number of mobile phones increasing at over 50,000 each day. "While the software prowess of Indian manpower has come into sharp focus, our manufacturing skills, particularly in high precision, high-tech sectors have not received adequate attention from foreign investors", the Minister said adding that the most of the top vehicle manufacturers and their suppliers were sourcing high-quality auto components from India.
The Minister indicated that a Bill on Special Economic Zones (SEZs) would be introduced in Parliament by the end of this year which will include Bio-Technology Parks and Free Trade and Warehousing Zones (FTWZs). In all these, FDI upto 100% would be permitted, including in the real estate development and establishment of the Zones. "We see SEZs as hubs of manufacturing and FTWZs as trading hubs", Shri Kamal Nath said. On outsourcing, the Minister pointed out to several authoritative studies which have shown that outsourcing was a win-win situation. "India benefits no doubt but so do the foreign companies; and the additional profitability of the companies sustains and creates more jobs in the developed countries as well. We should seek out more innovative areas for outsourcing and benefitting from the comparative advantage and complementarities of our economies", he said.
The theme of India Investment Roundtable is "Opportunities and Policy Challenges for Investment in India". It will be followed by a two-day Global Forum on International Investment which will focus on "Investment for Development: Forging Partnerships". These events are being organised by the Department of Industrial Policy & Promotion (IPP), Ministry of Commerce & Industry, along with OECD and CII. The event – which is being attended by about 250 delegates from all over the world – will help in enhancing mutual understanding on investment related issues between India and OECD economies.
**************
SB/PM/MRS
Press Information Bureau
Government of India
****New Delhi: 18 October, 2004
Exports of gold jewellery from India crossed US $ one billion in five months (April-August) of the current financial year 2004-2005, having increased by a record 141 % to reach a figure of US $ 1007.14 million ( i.e., $ I billion ) as against US $ 416.96 million worth of exports during the corresponding period of the last financial year 2003-2004. This was indicated by Shri Kamal Nath, Minister of Commerce and Industry, at the inauguration of India’s largest gold and jewellery show – "Festival of Gold 2004" – here today. The Festival, which will be on for a week (18-24,2004), is being organised by MMTC Limited, India’s leading bullion trader and a Government of India enterprise. Shri S.D. Kapoor, Chairman and Managing Director, MMTC, was present along with senior officials of the Ministry of Commerce and Industry and MMTC, besides the Bollywood actress, Ms. Dia Mirza, who displayed some of the most vibrant and scintillating creations. The varieties of gold and precious stone jewellery at the exhibition, the seventh in the series, are all hallmarked and certified for purity by MMTC.
Shri S. D. Kapoor said that "the forum provided by the company is a tribute to the famed artisans from different parts of the country with the sole objective of reaching their craft to the customers with the guarantee of purity and trust from MMTC".
The Indian jewellery market is growing at the rate of 15 to 20 % each year. Timed in sync with the festive season, the Festival of Gold is an exciting opportunity for traders and consumers alike to transact in a large range of precious stones and semi-precious jewellery, hallmarked for quality and purity. The exhibition is being supported by the World Gold Council (WGC).
***********
SB/PM/MRS
Press Information Bureau
Government of India
***New Delhi: October 15, 2004
Shri Kamal Nath, Union Minister of Commerce & Industry, held a meeting here this evening to discuss and review the import policy for scrap and metallic waste. The procedure for import of metallic waste and scrap had earlier been tightened with the imposition of port restrictions and a system of 100% inspection by Customs authorities. Indicating a further tightening of norms, Shri Kamal Nath announced that pre-shipment inspection of cargo through approved certifying agencies would be made mandatory for all future consignments of unshredded scrap. Imports of unshredded scrap would be allowed only through designated ports, to be notified by the DGFT shortly. 23 certifying agencies are already recognised for the purpose of pre-shipment inspection, including several which are based abroad. Shipping companies would be advised to load cargo in the vessel only with pre-shipment inspection certificates, wherever necessary, Shri Kamal Nath said.
The Minister further said that the Home Ministry would shortly be issuing an advisory specifying a period within which voluntary disclosure of material of combustible nature in the possession of importing units, if any, would have to be made. This would prevent such material from being abandoned at various places, causing risk to human life and property.
The meeting was attended by representatives of the Department of Steel, Ministry of Shipping, Department of Commerce, Department of Industrial Policy & Promotion (IPP), Ministry of Home Affairs and the Central Board of Excise and Customs (CBEC), Ministry of Finance, besides the Director General of Foreign Trade (DGFT) and representatives of two industry associations, namely, Steel Furnace Association of India and The All India Induction Furnaces Association.
A Public Notice (No. 15) dated 9th September 2004 was issued by the DGFT laying down the revised procedure for import of metallic waste and scrap. These amendments were as follows:
- Import of metallic waste and scrap shall be permitted in shredded and compacted form only; however, metallic waste and scrap in unshredded and uncompacted form may be imported through the major ports (covered by the Major Port Trusts Act, 1963) and the Inland Container Depot at Tughalakabad, New Delhi only. The customs authorities shall carry out 100% inspection of such unshredded and uncompacted materials.
- "Provided in case of import of metal scrap originating from a country affected by rebellion or war, the exporter shall furnish the following documents to the Customs at the time of clearance of goods".
- Notwithstanding anything contained above, the consignments, which have already arrived at the ports and which have left their ports or origin will be subject to 100% inspection by the customs authorities.
************
SB/PM/MRS
Press Information Bureau
Government of India
***DOUBLE DIGIT EXPORT GROWTH CONTINUES
INDIA’S FOREIGN TRADE DATA: APRIL-SEPTEMBER, 2004-2005New Delhi: October 15, 2004
India’s exports during the first six months (April-September) of the current financial year 2004-2005 are valued at US $ 33750.01 million (US $ 33.7 billion) which is 24.39% higher than the level of US $ 27132.61 million (US $ 27.1 billion) during April-September 2003-2004. This is over and above the 5.70% export growth in April-September, 2003-04 over April-September, 2002-03. In rupee terms, the exports were Rs. 153771.24 crore, during April-September, 2004-2005 which is 21.88% higher than the value of exports during April-September, 2003-2004.
Exports during September, 2004 are valued at US $ 6198.38 million which is 17.39% higher than the level of US $ 5280.13 million during September, 2003. In rupee terms, the exports were Rs. 28571.45 crore, which is 18.03% higher than the value of exports during September, 2003.
India’s imports during April-September, 2004-2005 are valued at US $ 46404.29 million representing an increase of 34.29% over the level of imports valued at US $ 34554.76 million in April-September, 2003-2004.
Oil imports during April-September, 2004-05 are valued at US $ 14539.29 million which is 57.78% higher than oil imports valued at US $ 9214.98 million in the corresponding period last year. Non-oil imports during April-September, 2004-05 are estimated at US $ 31865.00 million which is 25.75% higher than the level of such imports valued at US $ 25339.78 million in April-September, 2003-04.
Imports during September, 2004 are valued at US $ 8585.22 million representing an increase of 41.20% over the level of imports valued at US $ 6080.32 million in September, 2003. In Rupee terms the imports increased by 41.96%.
The trade deficit for April-September, 2004-05 is estimated at US $ 12654.28 million which is higher than the deficit at US $ 7422.15 million during April-September, 2003-04.
Tables giving details of exports, imports and trade balance, according to the provisional estimates of Directorate General of Commercial Intelligence and Statistics (DGCI&S) are attached.
SB/PM/MRS
DEPARTMENT OF COMMERCE |
||
(Unadjusted for late returns) |
||
(US $ Million) |
||
September |
April-September |
|
| EXPORTS | ||
| 2003-2004* | 5280.13 |
27132.61 |
| 2004-2005 | 6198.38 |
33750.01 |
| %Grw 2004-2005/2003-2004 | 17.39 |
24.39 |
| IMPORTS | ||
| 2003-2004* | 6080.32 |
34554.76 |
| 2004-2005 | 8585.22 |
46404.29 |
| %Grw 2004-2005/2003-2004 | 41.20 |
34.29 |
| TRADE BALANCE | ||
| 2003-2004* | -800.19 |
-7422.15 |
| 2004-2005 | -2386.84 |
-12654.28 |
| *Final figures as given by DGCI&S | ||
DEPARTMENT OF COMMERCE |
||
(Unadjusted for late returns) |
||
(Rs Crores) |
||
September |
April-September |
|
| EXPORTS | ||
| 2003-2004* | 24207.86 | 126164.06 |
| 2004-2005 | 28571.45 | 153771.24 |
| %Grw 2003-2004/2002-2003 | 18.03 | 21.88 |
| IMPORTS | ||
| 2003-2004* | 27876.49 | 160763.90 |
| 2004-2005 | 39573.56 | 211373.86 |
| %Grw 2003-2004/2002-2003 | 41.96 | 31.48 |
| TRADE BALANCE | ||
| 2003-2004* | -3668.63 | -34599.84 |
| 2004-2005 | -11002.11 | -57602.62 |
| *Final figures as given by DGCI&S | ||
Press Information Bureau
Government of India
***OECD GLOBAL FORUM ON INTERNATIONAL INVESTMENT AND INDIA INVESTMENT ROUNDTABLE OCTOBER 19-21
New Delhi: October 15, 2004
Organisation for Economic Cooperation and Development (OECD) – a grouping of 30 developed nations – is organising a Global Forum on International Investment (GFII) here from October 20-21, 2004. This is an annual event on the calendar of OECD and this year, this is being organised in India. Government of India is hosting the Conference with the support of Confederation of Indian Industry (CII). GFII is preceded by India Investment Roundtable being organised on October 19, 2004. Earlier GFIIs were held in South Africa (2003), China (2002) and Mexico (2001).
The theme of India Investment Roundtable will be "Opportunities and Policy Challenges for Investment in India" and Shri Kamal Nath, Commerce & Industry Minister, will inaugurate the India Investment Roundtable on October 19. The Global Forum on International Investment will focus on "Investment for Development: Forging Partnerships". The GFII will be inaugurated by Shri Dayanidhi Maran, Minister for Communications and Information Technology. Mr. Richard Hecklinger, Deputy Secretary General, OECD would also be present.
The India Investment Roundtable will focus on infrastructure sector of the industry. The event will be attended by a large number of participants from business communities from India, OECD countries, Non OECD countries and policy makers. The event will provide a platform for exploring opportunities for investments in Indian infrastructure sector.
Global Forum on International Investment will have interactive dialogue between policy makers, business and industry from OECD and Non OECD countries on the role of international cooperation to enhance the business environment and maximise the benefits of investment in developing countries, with a focus on India. The GFII will address OECD initiatives on Policy framework for investment, promotion of corporate responsibility and maximising Official Development Assistance.
The event will feature prominent speakers from OECD and Non OECD members and key multinational corporations. The prominent speakers would include Mr. Richard Hecklinger, Deputy Secretary General, OECD, Mr. Ashok Jha, Secretary, Department of Industrial Policy & Promotion, Government of India, Mr. Dhanendra Kumar, Secretary, Ministry of Road Transport and Highways, Mr. Michael F Carter, Country Director-India, The World Bank, Mr. Vinayak Chatterjee, Chairman, Feedback Ventures, Dr. Prakash G Apte, Director, Indian Institute of Management Bangalore and many others.
OECD Investment Roundtable and Global Forum on International Investment (GFII) will provide a unique opportunity to the Indian and international business community, policy makers and experts to come together on a common platform to work on a short and long term agenda for advancing common development goals. The event will help in enhancing mutual understanding on investment related issues between India and OECD economies.
***********
SB/PM/MRS
Press Information Bureau
Government of India
***ROUNDTABLE TO FOCUS ON INVESTMENT OPPORTUNITIES AND CHALLENGES IN
INDIA – KAMAL NATH TO INAUGURATENew Delhi: October 14, 2004
Shri Kamal Nath, Union Minister of Commerce & Industry, will be inaugurating India Investment Roundtable here on October 19, 2004. The Roundtable will focus on "Opportunities and Policy Challenges for Investment in India". Various subjects like India’s Investment policies: Progress and Future Directions, FDI and Infrastructure Development and the Road ahead: Investment Partnerships with India will be discussed by policy makers from Central and State Governments, leaders of the industry, experts from International Organisations and from Organisation for Economic Cooperation and Development (OECD) countries. The Roundtable is being organised by the Ministry of Commerce & Industry (Department of Industrial Policy & Promotion) in association with OECD and Confederation of Indian Industry (CII). OECD is a grouping of 30 developed nations. The event is likely to be attended by 350 participants from prominent business communities from India, OECD countries, Non OECD countries and policy makers. The event will provide a platform for exploring opportunities for investments in Indian infrastructure sector. This will be the main investment promotion event in India in this season.
India Investment Roundtable will be followed by OECD’s annual conference of Global Forum on International Investment (GFII), during October 19-22, 2004. GFII, which is on "Investment for Development: Forging Partnerships", will have interactive dialogue between policy makers, business and industry from OECD and Non OECD countries on the role of International Cooperation to enhance the business environment and maximise the benefits of investment in developing countries, with a focus on India. The GFII will address OECD initiatives on Policy framework for investment, promotion of corporate responsibility and maximising Official Development Assistance.
The event will feature prominent speakers from OECD and Non OECD members and key multinational corporations. The prominent speakers include Mr. Richard Hecklinger, Deputy Secretary General, OECD; Shri Ashok Jha, Secretary, Department of Industrial Policy & Promotion; Shri Dhanendra Kumar, Secretary, Ministry of Road Transport and Highways; Mr. Michael F Carter, Country Director-India, The World Bank; Shri Vinayak Chatterjee, Chairman, Feedback Ventures; Dr. Prakash G Apte, Director, Indian Institute of Management Bangalore; and many others.
Both these events are expected to provide a useful opportunity to the Indian and international community to come together on a common platform to work on a short and long term agenda for advancing common development goals.
The event details can be accessed and online registrations done at www.gfii.india.nic.in
****************
SB/PM/MRS
Press Information Bureau
Government of India
***KAMAL NATH TO INAUGURATE EXHIBITION ON GOLD ON 18 OCTOBER
New Delhi: October 14, 2004
Shri Kamal Nath, Union Minister of Commerce & Industry, will inaugurate the Jewellery Exhibition cum Sale – called "Festival of Gold 2004" – here on Monday, 18th October, 2004. The Festival organised by MMTC is the 7th such exhibition held annually and will be on from October 18 to 24, 2004.
In the exhibition "Festival Of Gold –2004", MMTC is presenting an array of jewellery both in plain gold and studded with diamonds and precious stones, from various parts of the country namely, Ahmedabad, Coimbatore, Bangalore, Chennai, Delhi, Kolkata, Hyderabad, Jaipur, Mumbai, Ratlam, Goa etc. The gold jewellery being showcased in the Festival of Gold 2004 are hallmarked for their Purity. The exhibition will showcase the finest handcrafted and machine cast jewellery made by Artisans all over India. Also on display will be gold and Silver Medallions, "Sanchi" Brand Silverware and loose diamonds/Precious stones
In addition, there would be a gem-testing Counter to assist customers to choose the gemstones of desired quality.
Needless to say, the exhibition cum sale organised by MMTC since 1994 in Delhi and Mumbai is eagerly awaited by the public as this provides them an opportunity to purchase quality jewellery with value for money.
*************
SB/PM/MRS
Press Information Bureau
Government of India
*****BRAZILIAN GOVERNMENT REMOVES ANTI DUMPING MEASURES LEVIED AGAINST
INDIAN JUTE EXPORTS TO BRAZILNew Delhi: October 12, 2004
In a major success for India’s jute industry, the Brazilian government has terminated the Anti-Dumping Duty on import of jute goods into Brazil on five producer-exporters of jute from India. Also, the Brazilian government reduced the rate of Anti-Dumping Duty for other Indian companies from 38.8% to 27.8%.
The Jute Manufacturers Development Council (JMDC) had been fighting this case with the Brazilian authorities since 1997 as the nodal agency. Following the victory in the European Patent Case on Waste Treatment using Hessian, this is the second successive achievement in the international trade disputes, which were contested by JMDC.
************
SB/PM/MRS
Press Information Bureau
Government of India
****
New Delhi: October 12, 2004
Shri Kamal Nath, Union Minister of Commerce & Industry, has invited foreign direct investment (FDI) from UK in manufacturing sector and in Greenfield projects in India, stating that "we especially look to FDI in manufacturing sectors and in Greenfield projects" at a Destination India Seminar organised by the Federation of Indian Chambers of Commerce & Industry (FICCI) in London last evening. He said that while all kinds of FDI was always welcome, investment for mere acquisitions "does not excite us. What we really want is FDI that generates the maximum economic activity, and thereby creates employment, that creates wealth for ordinary people", he said.
Shri Kamal Nath indicated that a bill would be introduced soon in Parliament on Special Economic Zones (SEZs), which would also include Bio-Technology Parks and Free Trade Warehousing Zones. In all these, FDI upto 100% would be permitted, including in the real estate development and establishment of the zones. "We see SEZs as hubs of manufacturing, and Free Trade & Warehousing Zones as trading hubs. These zones will be specially designated areas, for all economic purposes foreign territory, and, therefore, units located in them will enjoy a number of tax preferences. These, and the state-of-the-art infrastructure, should make them particularly attractive places to set up business in", the Minister said.
Referring to the recent World Economic Forum Global Competitiveness Report which ranks India at third place in the availability of scientists and engineers, Shri Kamal Nath said that over the next two decades, India will become one of the largest economies in the world and would continue to be among the most dynamic. "Establishing a strong presence in India is a strategic necessity for British Corporations", he said.
On outsourcing, the Minister said that several authoritative studies have shown that "outsourcing is in fact a win-win situation. India benefits no doubt, but so do British companies; and the additional profitability of the companies sustains and creates more jobs in the UK. We should seek out more innovative areas for outsourcing and benefiting from the comparative advantage and complementarities of our economies. We are looking to boost pharmaceuticals and clinical research. The medical expertise and para-medical skills available in India make it an ideal place for this kind of activity". He said India’s Patent Law is currently fully TRIPs- compliant adding that "we shall provide for product patent protection with effect from 1st January of next year as per our obligations".
***************
SP/PM/MRS
Press Information Bureau
Government of India
***
New Delhi: October 11, 2004
The age of the Indian MNC has now dawned, with the Indian industry realising that world-wide, businesses can thrive today only by crossing new frontiers, creating new markets and building new partnerships, Shri Kamal Nath, Union Minister of Commerce & Industry, said in his address today at a luncheon meeting "Celebrating Indian Investment in the UK" in London. The very theme of the gathering symbolised the transformation of the UK-India commercial links over the years and the new economic paradigm of two-way investments, which was emerging, he said.
Pointing out that India’s two-way international trade stands at US $ 150 billion and her foreign exchange reserves are a comfortable $ 120 billion, Shri Kamal Nath indicated that "the value of overseas acquisitions by Indian firms leap-frogged in the first half of 2004, with 24 buyoffs valued at a billion dollars, or roughly double the size of all of last year’s acquisitions. Indian companies are investing heavily in different parts of the world, including Germany, the United States, Australia, China, Korea, Thailand, Singapore and many parts of Africa. The world is now their oyster. Indian investments in the UK now roughly equal British investments in India. India retained in 2003 the rank of 8th largest investor here, and the 2nd largest from Asia. There have been some big-ticket investments last year. These investments have created a number of local jobs, as well as saved jobs in some cases. Existing Indian companies in the UK, particularly in the IT sector, have also ramped up their operations significantly, and at least two of them now employ over 1000 local people each".
The government welcomes foreign direct investment (FDI) and foreign investors would find a very conducive atmosphere in India, he said. At the same time, he pointed out that "while all kinds of FDI is always welcome, our very comfortable foreign exchange reserves means that investment for mere acquisitions do not excite us. Investment in trading operations is slightly better, as it leads to economic activity. But what we really want is FDI that generates the maximum economic activity, and thereby generates employment, that creates wealth for our people. Employment generation was a central election promise of ours. We especially therefore look to FDI in manufacturing sectors and in greenfield projects".
On outsourcing, Shri Kamal Nath said that India particularly appreciated the UK government’s pragmatic and positive approach. "Global sourcing is an opportunity in a competitive and technology-driven global economy, and not a threat", he said.
The Minister also raised the issue of some irritants that Indian companies had to face from time to time such as renewal of work permits for Indian IT professionals and the procedure for intra company transfers, as also the question of recognition of degrees. "But I am confident that this will soon get sorted out", he added.
*********
SB/PM/MRS
Press Information Bureau
Government of India
******
New Delhi: October 8, 2004
Developed countries must remove their trade distorting agricultural subsidies completely and fully before seeking agri market access in developing countries like India, Shri Kamal Nath, Union Minister of Commerce & Industry, said while participating in a high-level international conference on "Liberalisation and the Future of Agricultural Policy" organised by the French Institute of International Relations (IFRI) in Paris last evening. Signalling India’s approach in the detailed negotiations for modalities following the conclusion of the WTO Draft Framework Agreement of July in the current Doha Round, Shri Kamal Nath emphasised that for India agriculture would remain the core factor in determining how quickly progress was made in the modalities negotiations in the World Trade Organisation (WTO), while stressing that mercantilist compulsions of agriculture corporates should not drive the WTO negotiations.
Shri Kamal Nath participated in the debate with several other eminent persons at the conference whose objective was to highlight the possible future of the agricultural policy beyond the present multilateral or bilateral negotiations, taking into account both the positions of the major international partners, and empirical evidences concerning the strengths and weaknesses of their agricultural sectors. The other prominent speakers along with Shri Kamal Nath were Mr. Herve Gaymard, French Minister of Agriculture, Alimentation, Fisheries and Rural Affairs; Ms. Ann-Christin Nykvist, Minister for Food and Consumer Affairs, Sweden; Mr. Carlos Morgado, Minister for Economy and Commerce, Mozambique; Mr. Jean-Paul N’Goupande, Former Prime Minister of Central African Republic; Mr. John Bensted-Smith, Director in-charge of Economical Analysis and Evaluation, European Commission, Agricultural DG; Mr. Henri Nallet, Former French Minister of Agriculture; Mr. Terry Roe, Director, Centre for Political Economy, University of Minnesota; Dr. Tibor Szanyi, Political State Secretary, Hungarian Ministry of Agriculture & Rural Development and Mr. Guy Legras, Former General Manager of Agriculture in the European Commission.
In a hard hitting address before a distinguished international audience, Shri Kamal Nath said "Governments have more recently resolved at Geneva to uphold the legitimate food and livelihood security and rural development needs of developing countries in the agriculture negotiations. What we are confronting is a real life situation facing real persons desperate for recognition of the condition in which they live and the pressures on them from the subsidy-laden policies of other countries. Mercantilist compulsions of corporatised agriculture cannot drive these negotiations… We do not deny the developed world agricultural market access on a whim, or because we do not want to engage in trade. We have been forced to turn protectionist because we have no alternative; there is no level playing field. Agriculture sustains the daily lives of the majority of our people. Subsidised products flooding in from abroad would play havoc with the social fabric. Eliminate subsidies completely and fully, in all its guises, and we would not be hesitant to liberalise substantially. But we must be clear that this is not a chicken-and-egg situation. There is no doubt as to what needs to be done first – it is the removal of subsidies. It is logical that market access can only succeed this, not precede it."
Effective reduction in subsidies and non-tariff barriers in trade in agriculture by developed countries would increase world incomes and expand world trade far more than similar progress in any other area and there had to be a social consensus on this, Shri Kamal Nath said, adding that "it is no use making tariff reduction commitments on the one hand and erecting insurmountable non-tariff barriers on the other".
The Minister emphasised that international policy on agriculture should not ignore the ground realities obtaining in three-fourths of the world. "Developing countries need sufficient policy space and flexibilities in instruments to lift the large proportion of their populations employed in agriculture from their present level of backwardness. It is inconceivable for the developed countries to seek, and for the developing countries to offer, identity in treatments and commitments until all distortions in agriculture are removed", he added.
***************
SB/PM/MRS
Press Information Bureau
Government of India
******
New Delhi: October 7, 2004
Shri Kamal Nath, Union Minister of Commerce & Industry Minister, is in France at the invitation of the French Institute of International Relations (IFRI) to address the concluding session of the high-level conference on "Liberalisation and the future of Agricultural Policy" in Paris today. The concluding session is titled "Is a Consensus Possible Between the Different Protagonist". The other participants in the concluding session are Dr. Tibor Szanyi, Political State Secretary, Hungarian Ministry of Agriculture & Rural Development and Mr. Guy Legras, Former General Manager of Agriculture in the European Commission. This is a valuable opportunity soon after the conclusion of July package on the framework for agriculture to signal the approach of India in the detailed modalities for WTO negotiations, which have just commenced. The objective of the conference is to highlight the possible future of agricultural policy beyond the present multilateral or bilateral negotiations, taking into account both the positions of the major international partners, and empirical evidences concerning the strengths and weaknesses of their agricultural sectors.
The prominent speakers who addressed this conference were Mr. Herve Gaymard, French Minister of Agriculture, Alimentation, Fisheries and Rural Affairs; Ms. Ann-Christin Nykvist, Minister for Food and Consumer Affairs, Sweden; Mr. Carlos Morgado, Minister for Economy and Commerce, Mozambique; Mr. Jean-Paul N’Goupande, Former Prime Minister of Central African Republic; Mr. John Bensted-Smith, Director-incharge of Economical Analysis and Evaluation, European Commission, Agricultural DG; Mr. Henri Nallet, Former French Minister of Agriculture; and Mr. Terry Roe, Director, Centre for Political Economy, University of Minnesota;
Additionally, Shri Kamal Nath is meeting his counterpart in the French government for an exchange of views on multilateral negotiations as well as bilateral trade issues.
***********
SB/PM/MRS
Press Information Bureau
Government of India
******
New Delhi: October 7, 2004
Agriculture will remain at the core of how swiftly progress is made in the detailed negotiations on modalities in the WTO Doha Round, in the post-July 2004 package phase, Shri Kamal Nath, Union Minister of Commerce & Industry, said at an International Conference on "Liberalisation and the Future of Agricultural Policy", organised by the French Institute of International relations (IFRI) in Paris this afternoon. Emphasising that mercantilist compulsions of corporatised agriculture should not drive the negotiations in the World Trade Organisation (WTO), Shri Kamal Nath made it absolutely clear that developed countries must remove trade-distorting agricultural subsidies first and market access in developing countries would only follow the removal of such subsidies, not precede it.
In a hard hitting address before a distinguished international audience, Shri Kamal Nath said "Governments have more recently resolved at Geneva to uphold the legitimate food and livelihood security and rural development needs of developing countries in the agriculture negotiations. What we are confronting is a real life situation facing real persons desperate for recognition of the condition in which they live and the pressures on them from the subsidy-laden policies of other countries. Mercantilist compulsions of corporatised agriculture cannot drive these negotiations.
I have said so publicly before, and I say so again: the Indian farmer is not afraid of the farmer from a developed country. He is willing to compete with him. But he cannot compete with the Governments of the developed countries! In the entire negotiation on agriculture, the positions we have had to take, the strategies we have had to adopt are not because we are protectionist per se. We do not deny the developed world agricultural market access on a whim, or because we do not want to engage in trade. We have been forced to turn protectionist because we have no alternative; there is no level playing field. Agriculture sustains the daily lives of the majority of our people. Subsidised products flooding in from abroad would play havoc with the social fabric. Eliminate subsidies completely and fully, in all its guises, and we would not be hesitant to liberalise substantially. But we must be clear that this is not a chicken-and-egg situation. There is no doubt as to what needs to be done first – it is the removal of subsidies. It is logical that market access can only succeed this, not precede it."
Effective reduction in subsidies and non-tariff barriers in trade in agriculture by developed countries would increase world incomes and expand world trade far more than similar progress in any other area and there had to be a social consensus on this, Shri Kamal Nath said, adding that "it is no use making tariff reduction commitments on the one hand and erecting insurmountable non-tariff barriers on the other".
Reminding the participants of the Marrakesh Agreement of the Uruguay Round which said that multilateral rules were to be designed to ensure that "developing countries and especially the least developed among them, secure a share in the growth of international trade commensurate with the needs of their economic development", Shri Kamal Nath said that "central to our efforts must remain the prospect of a wider distribution of benefits for all peoples. Developed countries must effectively transfer technology, offer fair competition and generally support an enabling environment for developing societies to move ahead, to consolidate, and to move on again. It is important that the pursuit of liberalisation in global agricultural policy must create and nurture essential conditions for stimulating economic growth in developing countries, alleviating poverty, and promoting their integration into the global comity, not just as equal members, but as partners in progress and equals in prosperity".
The Minister emphasised that international policy on agriculture should not ignore the ground realities obtaining in three-fourths of the world. No doubt, there were difficulties and problems in all countries, including the developed countries. "But it is essential that the stark difference in the nature of the concerns in developed countries and those in developing countries be clearly understood and appreciated. This is a difference not merely of scale and magnitude, but a qualitative difference. Standard of living may be a valid concern for farmers in developed countries – in developing ones it is the very access to the next meal", the Minister said. "Developing countries need sufficient policy space and flexibilities in instruments to lift the large proportion of their populations employed in agriculture from their present level of backwardness. It is inconceivable for the developed countries to seek, and for the developing countries to offer, identity in treatments and commitments until all distortions in agriculture are removed", he added.
***********
SB/PM/MRS
Press Information Bureau
Government of India
***
HINDUSTAN DIAMOND PRESENTS DIVIDEND CHEQUE TO COMMERCE MINISTER
New Delhi: October 06, 2004
Hindustan Diamond Company Pvt. Ltd. (HDC) has presented a dividend cheque of Rs. 98 lakhs to the Government of India for the financial year 2003-04. The Chairman & Managing Director of HDC, Shri V. Madhavan Nair, handed over the cheque to Shri Kamal Nath, Union Minister of Commerce and Industry, here today. Government of India holds 50% shares in the company.
HDC, the largest supplier of rough diamonds to small and medium manufacturers and exporters of polished diamonds in India, has registered a record turnover of Rs. 1,028 crore in 2003-04, an increase of 7% over the previous year. The company has declared a dividend of 35% to its shareholders for the financial year 2003-04.
***********
SB/PM/MRS
Press Information Bureau
Government of India
******
GOVERNMENT
COMMITTED TO ECONOMIC REFORMS - KAMAL NATH TELLS GERMAN BUSINESS
DELEGATION
New Delhi: October 6, 2004
Shri Kamal Nath, Minister of Commerce & Industry, has said that India is committed to the process of economic reforms and "there is no going back on this", he told a high level business delegation led by Dr. Staffelt, Parliament State Secretary of the German Federation of the Ministry of Economy and Labour, when they called on him here this morning. Noting that Germany is one of India’s largest trading partners in Europe, he expressed the hope that trade between India and Germany would rise to US $ 10 billion in the near future from the level of US $ 5.4 billion achieved in 2003-04.
Stressing the potential for the further expansion of trade and economic cooperation between India and Germany, Shri Kamal Nath underlined that Government of India would play an enabling and facilitating role so that businesses on both sides could take advantage of the new trade and investment opportunities provided by liberal policies including India’s recently announced Foreign Trade Policy. In this context, he said that India had an unique advantage in having surplus incrementally in services in terms of a very large pool of skilled human resources. This combined with Germany’s technological skills could give a major push to bilateral ties, he said.
Shri Kamal Nath had detailed interaction with Dr. Staffelt, and his accompanying team representing a wide cross section of German business enterprises in areas such as media consultancy, insurance, food processing, hydro power plants, zinc processing, lifting, power and automation, textile & agricultural machinery, pipeline systems, electronic machinery, harvesting equipments and Lufthansa Airlines. They appreciated India’s progress in liberalising its economic regime as well as the steady growth of the Indian economy, especially in services. They said they would like to be part of this development process, in particular through greater involvement with the small and medium enterprises (SMEs). German economic policies were oriented towards an open market and German Know-how in many sectors of infrastructure such as telecom, water supply, power and modernisation of airports should facilitate the growth of bilateral trade, they said.
*****************
SB/PM/MRS
Press Information Bureau
Government of India
***
New Delhi: October 05, 2004
Shri Kamal Nath, Union Minister of Commerce & Industry, has said that India and Korea should aim for a relatively evenly balanced total annual trade of US $ 10 billion within three years and a sustained average annual Foreign Direct Investment (FDI) of one billion dollars. "These are not impossible targets.. I know we can achieve it if we go about our tasks with single minded determination", he said while addressing the Business Meeting organised by the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (FICCI) here this afternoon on the occasion of the state visit of Mr. Roh Moo-Hyun, President of Republic of Korea (ROK). Mr. Lee Hee Beom, Korean Minister of Commerce, Industry & Energy, who later called on Shri Kamal Nath, was also present on the occasion. Referring to the proposed Comprehensive Economic Partnership between India and Korea, Shri Kamal Nath suggested that the group which would discuss the framework of the economic partnership should go about its work in a target oriented manner by first defining the target and the time frame and then working out the best way to achieve the annual trade target of 10 billion dollars and annual FDI of one billion dollars.
Stating that India attaches great importance to her relationship with Korea – both political as well as economic – Shri Kamal Nath noted that the total trade between India and the Republic of Korea last year stood at around $ 3.3 billion. "This respectable figure, however, hides two truths which bear analysis. The first issue to be noted is that of the total trade, India’s exports were only 800 million dollars, whereas imports from Korea were 2.5 billion dollars; thus the balance of trade was heavily skewed. This, in itself, is not necessarily a bad thing, as there is nothing wrong with imports. India’s foreign exchange reserves position is comfortable, and increased imports demonstrate the confidence and requirements of a growing economy. However, closer scrutiny shows that this spurt was largely due to the import of a number of coaches for the Delhi Metro – now we can’t expect the Delhi Metro to go on indefinitely and sustain our bilateral trade! We should – and must – find other avenues", the Minister said.
The trade basket shows that India’s exports to Korea comprised a high proportion of primary products viz., agri products and dyes & pharmaceuticals whereas the major items of India’s imports from Korea are industrial goods like electronics, machinery and transport equipments. Stressing the need to diversify the basket, Shri Kamal Nath flagged the concern of Indian exporters by stating that "the sanitary & phyto-sanitary and the non-tariff barriers imposed by the ROK create impediments in increasing the volume of our exports. No such barriers restrict the import of manufactured goods from Korea to India. I would request that a closer look be taken at the SPS regulations, insofar as they apply to India at least, with a view to rationalising them, and minimising, indeed eliminating, non-tariff barriers".
As regards investment, the Minister said that although Korea was the seventh largest country in India, cumulative FDI inflow from Korea during the last 13 years was only about 3% of India’s total inflows and it did not account for even one billion dollars. Given that Korean brands, especially in the electronic and transportation industries, have become house-holdings in India, "there is no reason why FDI should not increase in leaps and bounds. I understand that the outward investment by South Korea annually is 3 billion dollars. India wants at least a third of that, i.e. one billion dollars a year investment should be what we must aim for", Shri Kamal Nath said.
************
SB/PM/MRS
Press Information Bureau
Government of India
*****
New Delhi: October 4, 2004
Shri T.A. Khan, Deputy Director General, National Informatics Centre (NIC) in the Department of Commerce has been elected as the Vice Chair of Geneva based United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT). He looks after the national project entitled "EC/EDI for Trade" in the Department of Commerce. India gets this position for the first time. This position would facilitate India closely handling developments in Electronic Business and its integration in global electronic trading environment.
The United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT)’s focal principal is to facilitate international transactions through the simplification and harmonisation of procedures and information flows so as to contribute to the growth of global Commerce. The UN/CEFACT is represented by the member countries through their delegation that participate in the work programme and the working groups of the CEFACT.
The CEFACT has various working groups carrying out the objectives of the CEFACT from time to time. These groups are: International Trade & Business Group (TBG); Techniques & Methodologies Group (TMG); Information Content Management Group (ICG); Applied Technologies Group (ATG) and Legal Group (LG).
***********************
SB/PM/MRS
Press Information
Bureau
Government of India
***
KAMAL NATH TO
ATTEND BUSINESS MEETING WITH KOREAN PRESIDENT
TRADE WITH KOREA DOUBLES IN SIX YEARS
New Delhi: October 04, 2004
Shri Kamal Nath, Union Minister of Commmerce & Industry, will be attending a Business Meeting with Mr. Roh Moo-Hyun, President of Republic of Korea here tomorrow. During the meeting, the two leaders are expected to discuss ways and means to enhance the trade and economic cooperation between the two countries. The meeting is being organised jointly by the Confederation of Indian Industry (CII) and the Federation of Indian Chamber of Commerce & Industry (FICCI). The Korean Minister of Commerce & Industry, Mr. Lee Hee-beom, will also call on Shri Kamal Nath tomorrow in order to explore possibilities of joint ventures, collaborations and discuss other issues regarding the bilateral trade.
India’s trade with Korea in 2003-04 has more than doubled as compared to 1997-98. During 2001-02 to 2003-04, the bilateral trade has registered an average growth of around 34% per annum. Indo-Korean trade at US $ 3.22 billion accounted for 2.28% of India’s global trade during 2003-04 as against 1.92% in 1997-98. India’s exports to Korea at US $ 762.16 million registered an increase of 18.19% during 2003-04 over the previous year.
Major items of India’s exports include cotton yarn, fabrics, made-ups, etc.; primary and semi-finished iron and steel; oil meals; other ores and minerals; petroleum products; drugs, pharmaceuticals and fine-chemicals etc. Major items of India’s imports include electronic goods; machinery except electrical and electronics; transport equipment; iron & steel; artificial resins, plastic materials; organic chemicals etc.
*****************
SB/PM/MRS
Press Information Bureau
Government of India
***
S.N. MENON TAKES OVER AS COMMERCE SECRETARY
New Delhi: October 01, 2004
Shri S.N. Menon today took over as the Secretary, Department of Commerce, in the Ministry of Commerce & Industry. Earlier, he had served in the Department of Commerce for almost three and a half years, initially as Additional Secretary & Financial Adviser from February 2001 and then as Special Secretary with effect from September 2003, in which capacity he headed the Trade Policy Division (TPD), handling matters pertaining to multilateral trade negotiations in the World Trade Organisation (WTO) and regional and bilateral trade agreements.
Shri Menon is an officer of the 1969 batch of the Indian Administrative Service (IAS: West Bengal Cadre).
He has had varied experience of working in the North-East, West Bengal and with the Government of India.
During his earlier tenure in the Government of India from 1985-1990, he worked in the Ministry of Welfare, and was responsible for policy planning in the sector of disability programmes for the mentally and physically challenged. This included coordinating projects and programmes of the Government of India with the State Governments and the non-government sector and for development of proposals for research and technical assistance from UNICEF, UNDP and other multilateral and bilateral agencies.
He spent a year’s sabbatical at the Centre for Policy Research, New Delhi, working in the areas of Panchayati Raj, decentralisation and Centre-State relations.
He was awarded the Hubert H Humphery North-South Fellowship under the Fullbright programme at the Humphery Institute of Public Policy, University of Minnesota, USA between 1981-92.
***********
SB/PM/MRS
Press Information
Bureau
Government of India
***
New Delhi: October 01, 2004
Both developed and developing countries stand to gain substantially from the removal of textile quotas under Multi-Fibre Arrangement (MFA) and the full integration of trade in textiles and clothing into the normal World Trade Organisation (WTO) rules, as per the WTO Agreement on Textiles and Clothing (ATC). According to a note by the UNCTAD Secretariat on implications of MFA termination on 31st December, 2004, developing countries with a comparative advantage in the sector should see their production and exports increase in a post-ATC world, and in developed countries, lower prices for clothing will mean that consumers should be big gainers. Such predictions are of course predicated on the premise that major developed countries will avoid filling the ATC void with a barrage of new barriers. Should they refrain from such trade distortions, developing country firms that respond to market demands, move up the value chain, and capture niche markets are poised to reap substantial gains in a post- ATC world.
Some countries and segments of the industry are likely to experience some level of dislocation and therefore would require assistance with post-ATC adjustment. However, the post-ATC picture needs to be seen in its proper perspective as there are several factors and assumptions that come into play in determining the extent, type and scope of the post-ATC impact. LDCs and small economies might feel the impact of ATC expiry most, and providing support measures to them would be a priority. There are outstanding issues which could affect development gains to be reaped from the ATC expiry, and these issues must be addressed properly. Giving in to protectionist demands to extend the ATC or to replace it by plethora of protectionist non-tariff barriers, including contingency measures, would equate to taking away with one hand what ATC expiration gives with the other, the UNCTAD note says.
The dynamics of textiles and clothing trade will be influenced by the factors discussed above, while the international market for textile and clothing products continues to grow as world population, incomes and standards of living increase. Also, the economies of some populous developing countries are growing fast, and the markets in the South will thus become increasingly important for Southern exporters. The sector also provides tremendous opportunities and prospect for developing countries given their leverage on labour cost, as well as the possibility for positive spillover effects into other sectors, particularly upstream commodities sectors and downstream industries, the note adds.
************
SB/PM/MRS