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REPORT OF THE COMMITTEE ON PRICE STABILISATION FOR COMMODITIES PRESENTED TO ARUN SHOURIE

New Delhi: November 30, 2002

The final Report of the Committee on the Operational Modalities of the Rs. 500 crore Price Stabilisation Fund for Commodities was presented to Shri Arun Shourie, Minister for Disinvestment and Commerce & Industry here this morning by Shri L.V. Saptharishi, Additional Secretary (Plantations), Department of Commerce, who chaired the Committee.

Deeply concerned with the problems being faced by the growers of coffee, tea, rubber and tobacco due to prevailing all time low prices of these commodities for quite some time and with a view to demonstrating Government’s commitment to safeguard the interests of the growers of these commodities, the Department of Commerce, Ministry of commerce & Industry, had obtained in-principle approval from the Government during June 2002 for the setting up of a Price Stabilisation Fund (PSF) with an initial corpus of Rs. 500 crore. In order to work out the operational modalities of the Fund, a Committee was set up under the chairmanship of Shri Saptharishi. The members of the Committee were Dr. Prodipto Ghosh, Additional Secretary, Prime Minister’s Office, Shri A. K. Thakur, Joint Secretary, Department of Commerce, Shri R.N. Choubey, Joint Secretary, Department of Expenditure, Dr. S.N. Kaul, Consultant, Department of Economic Affairs, Shri N. Srinivasan, Chief General Manager, NABARD, Dr. Kalyan Raipuria, Sr. Economic Adviser, Department of Consumer Affairs, Shri Suman Bery, Director General, NCAER and Dr. Anil Sharma, Principal Economist, NCAER. Smt. Priya Kumar, Deputy Secretary, Department of Commerce served as Member Secretary of the Committee. Welcoming the Report, Shri Shourie indicated that its recommendations would be submitted soon to the Cabinet Committee on Economic Affairs for clearance.

The corpus of Rs. 500 crore will include contribution of Central Government, growers and the concerned State Governments where these crops are primarily grown. The Committee has recommended that the corpus of the Fund should remain undisturbed and interest earnings alone be utilised for operationalising the Scheme. A Trust Fund may be created for operating this fund and the monitoring of the Fund be entrusted to a Committee set up under the Department of Commerce and comprising of representatives of the Ministry of Finance, NABARD/designated bank/participating banks, representatives of the concerned State Governments, distinguished economists and commodity experts.

The Scheme will be operational initially for ten years commencing from April, 2003.

The Fund seeks to bring about price stabilisation for each of the commodities without resorting to the practice of procurement operations by the Government agencies. Intervention through the PSF means that when the prices worsen, the growers participating in the scheme will be compensated through the fund and in the boom years the growers will have to contribute to the PSF.

Several methods for determining the normal level of prices for each of these commodities were considered by the Committee and keeping in view the complexities of the concerned commodity markets and ease of operation, the Committee has recommended adopting a uniform band of 40 per cent for all the four commodities, with a price spectrum band of +/- 20% from the seven year moving average of international prices.

The Committee considered three alternative schemes to support growers through the PSF, viz., Price Stabilisation Scheme, Modified Price Stabilisation Fund Scheme (MPSF) and Multipurpose Loan Scheme. After examining the merits and demerits of each of the three schemes and evaluating them on the basis of various objective criteria, the Committee has recommended adoption and implementation of the MPSF which is based on the principle of suitable contributions from the Government, as well as from the growers during the normal/boom/distress periods. The Committee has recommended that to begin with the Scheme may cover only about 3.42 lakh growers, being the most needy amongst those having an operational holdings of upto 4 hectares.

Under this scheme each of the participating grower will be required to make a non-refundable initial contribution as entry fee to the fund and open an MPSF account with any nationalised bank. During normal year when the prices remain within the price spectrum band, the grower will be required to deposit certain amount to the MPSF account. The Government from the interest earnings of the corpus will also contribute to the individual account of the growers. During boom year when the prices pierce the upper band, the grower shall contribute to his MPSF account while the Government will not make any contribution. In the distress year when the prices fall below the lower band the Government will contribute and grower shall not be required to contribute to his account.

The Committee has also recommended that Government should take initiative and facilitate the establishment of Commodity exchanges with provision for futures trading.

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INDIA TO FOCUS ON INCREASING MARKET ACCESS IN WTO INDUSTRIAL TARIFF NEGOTIATIONS FICCI ROUND TABLE ON WTO NEGOTIATIONS ON INDUSTRIAL TARIFFS AND MARKET ACCESS

New Delhi: November 29, 2002

India will take up the issue of peak tariffs in developed country markets and the non-tariff barriers that Indian exporters have to face in the WTO negotiations on Industrial Tariffs and Market Access so as to substantially increase market access for India’s goods and services in those countries. Addressing a Round Table on WTO Negotiations on Industrial Tariffs and Market Access organised by Federation of Indian Chambers of Commerce & Industry (FICCI), here this morning, Shri Dipak Chatterjee, Commerce Secretary, said that these issues had become onerous in view of the various preferential trade arrangements (PTAs) and Free Trade Areas (FTAs) that had come up giving many other developing countries far better access. "We have to innovate our strategies if we want to attain the target of 1% of global trade in the near future", Shri Chatterjee said. He reiterated the government’s resolve to continuously consult all stakeholders in WTO matters and emphasised the importance of seeking suggestions of all participants in deciding the approach that the country should take in the ongoing negotiations on market access for non-agricultural products (Industrial Tariffs).

Explaining the background, Shri Chatterjee said that the mandate for negotiations on market access for non-agricultural products had been given by the Doha Declaration which was adopted at the Doha Ministerial Conference of the WTO in November last year. Since then, work has commenced on this subject as also in several other areas. The Doha work programme has to conclude as a single undertaking by 1^st January, 2005, while the 5^th Ministerial Conference of the WTO at Cancun (Mexico) in September 2003 could provide an opportunity for a mid-term review.

The mandate for negotiations on market access for non-agricultural products was fairly clear, Commerce Secretary said. "The focus is on reduction or elimination of tariffs and a special reference has been made to reduction/elimination of peak tariffs, tariff escalations and high tariffs and removal of non-tariff barriers, particularly in respect of products of export interest to developing countries. Special and Differential treatment including less than full reciprocity in reduction commitments is built into the mandate. Already three meetings of the Negotiating Group have been held earlier this year which have been more in the form of exchange of views. One more meeting will be held next week. As per the time table drawn up for the negotiations, the first stage will be for finalisation of modalities. Proposals on modalities have to be submitted by 31^st December, 2002. Based on these, the modalities have to be finalised by May next year. Only after that, will actual negotiations on tariff concessions take place. Modalities however, have an important role in the negotiations. Normally, these are taken to mean what approach we should take to tariff reductions, whether it will be by formula, or by request offer etc., whether all unbound items should be bound, what is the base year to be used for reference and what is the base rate of duty for from which to make reductions etc. We need to exercise great care even at this stage of formulation of modalities since they will have a great bearing on the actual negotiations that will follow", he said.

Some of the developed countries have already submitted their proposals. Earlier this week, the US Trade Representative (USTR) had also announced a far-reaching proposal, which needs to be examined, he said, adding that the government is in the process of formulating its proposals on the modalities.

The whole issue of industrial tariffs has to be looked at also in the context of reforms that has been undertaken in India including through reductions in tariff. In the last two budgets, a clear roadmap was laid down to bring down the country’s tariffs to the level of 10% and 20% by 2004. It is important to see how these tariff reductions that were brought about autonomously could be leveraged with a view to securing greater market access for India in other countries. In this, the objective of achieving high export growth was of paramount importance, he said.

Shri Chatterjee also pointed that the results of the market access negotiations would be implemented over a period starting from the conclusion of the negotiations by around 2005 and could extend upto 2010 thereafter, going by past precedents. He requested the participants to factor in to this aspect while making their suggestions. Shri S.N. Menon, Additional Secretary, Ministry of Commerce & Industry was also participated in the Round Table along with senior representatives of trade and industry.

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GROUP OF MINISTERS ON WTO

New Delhi: November 29, 2002

The government has constituted a Group of Ministers consisting of Minister of Finance and Company Affairs, Minister of Law & Justice, Minister of Commerce & Industry, Minister of Agriculture and Minister of External Affairs for finalising the strategy to be followed during the negotiations on agriculture in the World Trade Organisation (WTO) and to take appropriate decisions from time to time within the overall approach approved by the Cabinet Committee on WTO matters. In the negotiations on agriculture which are scheduled to be concluded by 1 January, 2005, the government has presented proposals to safeguard the interests of Indian farmers. This was stated by Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, in a written reply in the Lok Sabha today.

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INDIA TO EMERGE AS MAJOR PLAYER IN ORGANIC PRODUCTION & EXPORTS – RUDY INTERNATIONAL CONFERENCE ON ORGANIC PRODUCTS BEGINS

New Delhi: November 28, 2002

India could emerge as a major player in organic production and exports in the world market. The country has immense potential in this sector and the government has put in place an accreditation system as per the National Standards for Organic Products, which will enjoy reciprocal approval from other international organic programmes. Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, stated this here today, in an inaugural address of the International Conference on Indian Organic Products-Global Markets. The 5-day (28^th November to 2^nd December) Conference got underway which is being organised by the Ministry of Commerce & Industry in association with Bio-Dynamic Association of India. Shri Ajit Singh, Minister of Agriculture; Shri Digvijay Singh, Chief Minister of Madhya Pradesh; Ministers from Sikkim, Tamil Nadu, Assam and Shri Dipak Chatterjee, Commerce Secretary were also present in the inaugural function.

Shri Rudy said that the global trade in organic products was growing phenomenally and the consumption of organic food is expected to touch 15% of the total world food consumption by 2005. He referred to the report of the International Trade Centre – "The retail market for organic food and beverages increased from an estimated US $ 10 billion in 1997 to US $ 17.5 billion in 2000" and said it augurs well for India. India enjoys traditional advantages coupled with large agriculture base to promote organic agriculture, he said. The Minister informed that under the initiative of APEDA a pineapple processing unit was started in Tripura which was inaugurated by the President of India, Dr. A.P.J. Abdul Kalam, this year. The Prime Minister of India, Shri Atal Behari Vajpayee, had released the National Programme of Organic Products (NPOP) on 8^th May, 2000 and an ‘India Organic Logo’ was released by the government on 26^th July, 2002 which would be carried only on Certified Indian Organic Products.

Shri Ajit Singh, in his address, said that the indiscriminate use of chemical pesticides had resulted in the degradation of soil and produce. Research institutes should come forward to help farmers in making them aware of the advantages and the latest trends in this sector, he added. In his keynote address, Shri Chatterjee, hoped that this Conference would provide an opportunity for understanding the market potential for Indian organic products and also a platform for interface between Indian organic producers, policy makers and the international organic industry.

To showcase Indian organic products to international buyers, an Organic Expo is also being organised on 1^st and 2^nd December, 2002. The 5-day Conference would deliberate on themes such as: India’s core competence in organic sector, Diverse marketing opportunities in organic products, Alternative trade and organic marketing and International cooperation for organic agriculture in India. Various Commodities Boards like Tea Board, Coffee Board, Rubber Board, Spices Board, Agricultural food Products Export Development Authority (APEDA), Marine Products Export Development Authority (MPEDA) are actively participating in this mega event.

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INDIA & CHILE SIGNS COOPERATION AGREEMENT TO PROMOTE TRADE RELATIONS
IITF REPRESENTS INDIA’S STRENGTH IN TRADE & COMMERCE – RUDY

New Delhi: November 27, 2002

India and Chile have signed a Cooperation Agreement to promote & develop trade & economic relations between the two countries. Under the Agreement, both the countries would provide all possible assistance and facilities to the businessmen and trade missions, for the participation in exhibitions & trade fairs. Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, announced this while giving away awards of India International Trade Fair 2002 (IITF) here today. Shri Rudy said that IITF had been an expression of India’s strength in the field of trade & commerce and its 22^nd edition this year amply reflected the changing face and capabilities of Indian industry. Shri J. Vasudevan, Chairman & Managing Director, India Trade Promotion Organisation (ITPO) was present in the function along with members of various foreign missions and representatives of the trade & industry.

Shri Rudy highlighted the fact that many high level delegations from about 30 countries had visited the Fair, including that of China, Chile, Sri Lanka, Namibia, and Uganda. This would lead to fresh opportunities for trade and investment through interaction between the exhibitors and business delegations, he said. The Minister complimented the ITPO for the innovations in the Fair to make it a hub for social & cultural activities.

Among the State’s category awards Rajasthan got the Gold while NCT of Delhi won Silver medal. Ministry of Communications got the Gold while Defence Exhibition got Silver medal in Central Government’s category. Chile bagged Gold in the Foreign country category and China won Silver. Shri Rudy congratulated the award winners and participants for making the Fair a huge success.

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GOVERNMENT FULLY ALIVE TO PROBLEMS OF COMMODITIES AND PLANTATION SECTOR – SHOURIE ASSURES FULL SUPPORT IN DEALING WITH COMMODITY PRICE SITUATION

New Delhi: November 25, 2002

Shri Arun Shourie, Minister for Disinvestment and Commerce and Industry, has said that the government is fully alive to the problems faced by growers of commodities such as rubber, tea, coffee and cardamom in various parts of the country and a number of measures have been initiated to deal with the current situation arising out of depressed prices of commodities in the international market. Of the four commodities, coffee prices have been affected the most since 2000. Similarly, in the case of tea, prices have declined during the last few years. In the case of natural rubber, although the international situation has been extremely unfavorable over the last four years, the situation has started improving considerably from the middle of 2002 with prices recovering in both national and international markets, Shri Shourie said, adding that in the case of cardamom, no serious crisis had been brought to the government’s attention in the current year.

Listing out the series of measures initiated by the government to deal with the situation in a statement in the Lok Sabha on 22 November in response to the calling attention motion on "Crisis being faced by rubber, tea, coffee and cardamom growers in various parts of the country, particularly in Kerala and steps taken by the government in regard thereto", Shri Shourie mentioned the following: In the case of coffee, the measures include restructuring of the term loan as well as crop loans availed of by the growers of coffee; interest subsidy to the small growers; programme for quality upgradation; enhancement of productivity; package of incentives for export of coffee and innovative marketing strategies in the international as well as domestic markets to arrest the decline in exports and also to increase domestic consumption. In respect of tea, some of the important measures include: increasing the basic customs duty on import of tea from 70 to 100% from 2002-03 onwards; reduction in excise duty on tea from Rs. 2 per kg to Rs. 1 per kg.; providing financial incentives to exporters of tea to meet part of the cost of handling, packages, transport/freight charges, and quality upgradation programme being implemented by the Tea Board. To help the growers of natural rubber, measures have been taken to curb surge in imports of natural rubber; a package of incentives has been introduced for export of natural rubber; and a scheme for modernisation of factories producing technically specified rubber (TSR) has been approved. Programmes and schemes of the 10^th Five-Year Plan have been formulated to ensure long term development of the plantation sector, Shri Shourie stressed.

The following is the full text of Shri Shourie’s statement:

"Honourable Mr. Speaker Sir,

In recent years the prices of commodities in the international markets are generally depressed and this has had its effect upon these commodities produced and exported by India. Domestic prices of commodities like coffee, tea, and natural rubber have a tendency to move more or less in tandem with the international prices. One of the factors that has caused this fall in international prices is that demand has not kept pace with supply of these commodities.

Of the four commodities, coffee prices have been affected the most since 2000. The situation over the last two years remains unfavourable to the coffee growers, in India as well as in major producing countries like Brazil, Columbia, Indonesia and countries in Africa. World prices of the two types of coffee, Arabica and Robusta, averaged 130 cents per kg and 53 cents per kg respectively, in 2001 – these were about 80% below the recent peak level price of 261 cents per kg in 1995 in respect of Robusta and 64% below the peak level price of 359 cents per kg in 1997 for Arabica.

Similarly, in the case of tea, prices have declined over the past few years. There was 26% decline in world tea prices in 2001 as compared to the peak level price of 189 cents per kg in 1997. This decline in international prices coupled with problems like decreasing exports, stagnant domestic demand, and higher cost of production has adversely affected domestic prices.

In the case of natural rubber, although the international situation was extremely unfavourable over the last four years, the situation has started improving considerably from the middle of 2002, with prices recovering in both domestic and international markets. While the present international prices of natural rubber is around Rs 39 per kg, the domestic price is around Rs 36 per kg – this compares with Rs 28 per kg during 2001. Domestic and international prices are moving in tandem and because of this development there is some relief amongst the growers of natural rubber.

In so far as Cardamom is concerned, no serious crisis has been brought to the Government’s attention in the current year. Cardamom is cultivated in some 40,000 holdings in the three states of Kerala, Karnataka and Tamil Nadu. More than 90% of these holdings are in the 2-4 hectare category. The prices of Cardamom have been comfortable during the last 3-4 years and no cases of or the need for closure, abandonment etc. of plantation have been reported. The price for small Cardamom has risen from around Rs. 487/- per kg. in 1999-2000 to over Rs. 690/- per kg. today.

Government of India are fully alive to the problems of these commodities and a number of measures have been initiated to deal with the current price situation. Some of the steps taken by the Government are:

Coffee:

• restructuring of the term loan as well as crop loans availed of by the growers of coffee

• interest subsidy to the small growers

• programme for quality upgradation

• enhancement of productivity

• package of incentives for export of coffee and innovative marketing strategies in the international as well as domestic markets to arrest the decline in exports and also to increase domestic consumption.

Tea :

Programmes and schemes of the 10^th Five Year Plan have been formulated to ensure long-term development of the plantation sector."

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IMPORTS FOR RE-EXPORT HAVE NOT AFFECTED DOMESTIC INDUSTRY: RUDY

New Delhi: November 26, 2002

In the case of plantation commodities tea, coffee and rubber, the import of the commodities for re-export has not affected the domestic industry for the reasons given below:

• In the case of tea, M/s. Hindustan Lever Ltd., which is also a 100% Export Oriented Unit (EOU) is the only multinational company importing tea into India for the purpose of re-export after making some value addition. No tea imported by the company is sold in the domestic market. Import of tea for re-export has been allowed in order to increase the price competitiveness of Indian tea in the international market and also to cater to the requirements of international buyers which will help in boosting the Indian tea export. The imported teas have also to conform to the quality parameters as prescribed under the Prevention of Food Adulteration Act (PFA). Moreover, the total quantum of tea imported into India is less than 2% of the total domestic production of tea.

• In the case of coffee, import of coffee in green bean form is carried out by the EOUs who re-export the same as value added products contributing to the foreign exchange earnings of the country. The annual average quantum of coffee imports during the last five years is only about 2% of the annual average export of coffee.

• In the case of rubber, duty-free import of natural rubber against advance licenses and for EOU/EPZ units is banned. There is no import of natural rubber into the country for re-export by the multinational companies.

In order to protect the Indian tea and coffee producers, the government has increased the import duty on tea and coffee from 70% to 100%. There is no proposal at present to temporary ban import of tea and coffee for re-export from the country.

This was stated by Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, in a written reply in the Rajya Sabha on 25^th November, 2002.

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New Delhi: November 26, 2002

India’s trade with Singapore was the highest out of ten ASEAN countries during 2001-02 at US $ 2.26 billion. Also, Singapore was the largest investor in India from the ASEAN region in terms of actual FDI inflow at US $ 420.4 million during August 1991-June 2002. Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, indicated this, here today, in an interactive meeting with Mr. George Yeo, Minister for Trade and Industry of Singapore. Shri Rudy emphasised the importance of Singapore in enhancing and furthering India’s economic cooperation with the ASEAN region. The Minister pointed out the vast potential of cooperation with Singapore in the areas of pharmaceuticals, biotechnology, information technology and knowledge industry. Mr. Chak-Mun See, High Commissioner of Singapore in India and Shri R.S. Lodha, President, FICCI were present at the meeting along with representatives of trade & industry from both countries, senior officials of the Ministry of Commerce & Industry and External Affairs.

Shri Rudy gave a detailed account of the economic reforms initiated by the government, especially measures taken to foster knowledge-based industry. Laws and regulations based on convergence would support these initiatives in enhancing the commercial linkages between the two countries, he said. During the meeting, the thrust areas identified for enhancing bilateral cooperation were, IT & Telecom, Infrastructure, Special Economic Zones, Human Resource Development, Financial Services, Biotechnology and Entertainment.

In his address, Mr. Yeo said that the economic scenario in South East Asia had undergone a tremendous change within last few months and Singapore could become an extension of India in South East Asia. India’s future required her to look eastwards and in this respect, Singapore would prove very important, he added.

Major Indian exports to Singapore includes gems & jewellery, electronic goods, oil meals, drugs, pharmaceuticals and fine chemicals whereas major Indian imports comprises electronic goods, machinery except electric and electronic machinery, organic chemicals, printed books, newspapers, journals etc.

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EXPANSION OF TRADE WITH CHINA, JAPAN UNDERWAY

New Delhi: November 27, 2002

It has been the continuous endeavour of the government to expand trade relations with China and Japan. The areas in which India’s trade relations have been strengthened with these countries include iron ore, electrical goods, cashew, organic & inorganic chemicals, primary & semi-finished iron &steel, processed minerals, manufacture of metals etc. The new items identified for expansion of trade include shrimps and prawns, cuttle fish, oil cakes, granite, insecticides, meat of bovine animals, coffee, black tea, sesame seed etc. In the recent past a Record Note of Discussions was signed with the Chinese delegation which visited India in connection with the conclusion of Sanitary & Phyto-Sanitary (SPS) Protocol.

Among other countries, India and USA signed a document on the formation of terms of reference for the India-United States Commercial Dialogue on March 23, 2000 in New Delhi to (a) facilitate trade (b) maximize investment opportunities across a broad range of economic sectors, including information technology, infrastructure, biotechnology and services. During the visit of Prime Minister to USA in November 2001, both sides have agreed to resume and expand the bilateral economic dialogue, including Commercial Dialogue and Working Group on Trade Policy.

The Russian Federation (Russia) is our major trading partner out of the newly formed States of the erstwhile USSR. The main commodities of export to Russia are ready-made garments (RMG) cotton, drugs, pharmaceuticals & fine chemicals, tea, coffee, transport equipments, processed minerals, RMG of other textile material, cotton yarn, fabrics, made ups, tobacco, RMG wool, RMG manmade fibres etc. The main items of import from Russia are iron & steel, fertilizers, non-ferrous metals, newsprint, machinery, synthetic & reclaimed rubber, organic chemicals, inorganic chemicals, primary steel etc. During the 8^th Session of Indo-Russian Working Group on Trade & Economic Cooperation held at New Delhi on 5^th and 6^th February 2002, both sides agreed to take necessary measures to ensure sustainable growth and continued diversification of mutual trade.

Both UK and Germany are important members of EU. India and the EU are engaged in a continuous dialogue at different levels for addressing the various trade issues. Trade and business representatives of both sides are also in touch with each other to facilitate expansion of bilateral trade and investment between India and EU countries. Three India-EU Business Summits have been held so far for enhancement of bilateral trade and investment relations. A joint sectoral study by trade/industry representatives of both sides has been undertaken to address the issues and concerns in priority sectors. The areas covered by the study are food processing, mechanical engineering, IT & telecom and financial services, textiles, power/energy and biotechnology.

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New Delhi: November 25, 2002

Agricultural and processed food products exports from India under the aegis of the Agricultural Processed Food Products Export Development Authority (APEDA) have reached a record level of Rs. 10,169.43 crore during 2001-02 – a 3-fold increase compared to exports worth less than Rs. 3000 crore seven years ago. This was indicated by Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, at the APEDA export awards function held here today. While complimenting the exporters for their performance, Shri Rudy stressed that substantial headway would have to be made to correspondingly augment income of the farmers to agri-exports. "Though there are some good examples like grapes, mangoes and kinnows, where export oriented production has benefited the farmers with better incomes, yet these are only a few instances. Farmers must be made the ultimate commercial beneficiary of the exports because it is his produce that is traded", Shri Rudy said, adding that agro-exports would be sustainable and competitive in the global scenario only if adequate return to the farmers was ensured.

Referring to the WTO regime, Shri Rudy said that the WTO agreement had opened new vistas of trade opportunities for developing countries like India. Removal of distortions in agri trade was likely to provide a level playing field for all the players alike and also provide access to the hitherto heavily protected markets. "We have lost many chances earlier. Opportunity lost today shall leave us far behind in the global race. We must, therefore, capitalise on our inherent strengths and carve out a niche in the international trade of our agricultural products. We must aim at 5% share in the next decade. Foundation for this shall have to be laid without any further delay", he said.

Shri Anil Swarup, Chairman, APEDA; Shri A. K. Thakur, Joint Secretary, Ministry of Commerce & Industry; and a large number of APEDA exporters were present at the function.

Emphasising that achievement of the larger share of the world market would be possible through joint effort of government and trade, Shri Rudy assured the exporters that the government was committed to extending full support for creating the required infrastructural facilities and upgradation of quality for further boosting agro exports. He also welcomed the steps initiated by APEDA to ensure quality improvement by developing pre and post-harvest protocols, and assisting exporters in implementing quality management system such as ISO 9000 etc. "In future, competitive pricing and quality would determine the course of international trade. Hence, launching of the "Quality Produce of India" Logo is a move in the right direction. This should be extended to more and more products as it would establish India as a supplier of quality products", the Minister added.

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INDIA’S EXPORTS TO NETHERLANDS UP BY 11.5%
RUDY MEETS NETHERLANDS FOREIGN TRADE MINISTER

New Delhi: November 25, 2002

India’s exports to Netherlands have shown a considerable growth of 11.5% in the first four months (April-July) of 2002-03 at US $ 307.17 million over US $ 274.38 million in 2001-02. The bilateral trade between the two countries (US $ 420.52 million) also increased by over 10% during the same period. This was indicated by Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, during his meeting with the Netherlands Minister for Foreign Trade, Mr. Joop Wijn and the Minister for Development Cooperation, Ms. Agnes Van Ardenne, here today. Shri Rudy pointed out that there was vast potential for increasing Indian exports to Netherlands in the sectors of textiles & garments, leather & leather products, electronic & computer software, light engineering products, ceramic products, sports goods etc.

During the meeting, Shri Rudy informed that Netherlands had ranked seventh in the list of countries from which FDI has been approved in India. Total FDI approved from the Netherlands during 1991-2002 (up to 31^st May, 2002) is Rs. 87,926.13 million. The top sectors of FDI inflow from Netherlands includes telecommunications, financial & non-financial services, food processing, horticulture etc. Shri Rudy gave a brief overview of the economic reforms India is undergoing and asked his counterpart to take advantage of India’s liberal and transparent investment regime. India has reduced the tariff and taxes on many specific items which are of interest to EU, he added.

Regarding WTO, Shri Rudy drew attention of the visiting Minister towards the fact that India was actively participating in all the elements of the Doha Work Programme and stressed the importance of the development focus of the Doha mandate. The visiting Minister informed that India was one of the ten largest recipients of Dutch financial assistance under the Dutch Development Cooperation Programme. He emphasised the importance of increasing the economic cooperation between the two countries from the current level and said that there was a need to explore new areas to realise this.

Major items of India’s exports to Netherlands are cotton textiles, cashew, drugs & pharmaceuticals, organic/inorganic/agro chemicals, handicrafts, leather goods etc. The major imports from Netherlands include organic chemicals, project goods, vegetable oils, machinery, electronic goods, transport equipment etc.

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OVER 5% GROWTH IN PROJECT EXPORTS – CALL FOR STRATEGIC APPROACH TO PROMOTE EXPORTS IN CONSTRUCTION INDUSTRY

New Delhi: November 25, 2002

Project exports from India have touched Rs. 1434 crore during 2001-02, indicating a growth of 5.4% over the previous year. With the increasing competition from countries like China & Korea, there is a need for a strategic approach for export promotion in the construction industry. This was stated by Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, while giving away the export awards of Overseas Construction Council of India (OCCI), here on Saturday.

Shri Rudy said that the economic reforms had only touched the fringes of the construction sector and stressed the need for using equipment oriented technology to make their presence felt in the sector. The Minister said that the government had already withdrawn customs duty for re-importation of equipment and machinery and had simplified various procedures for the benefit of exporters. He said that Indian companies had bid for over 100000 crore of overseas contracts with a 20% success rate and asked the representatives to be more aggressive in the overseas business. The Minister emphasised that the consultancy firms and construction companies must work in tandem jointly to secure international projects. Shri Som Datt, Chairman, OCCI was present at the function along with representatives of the construction and consultancy industry.

Voltas Ltd. got the highest award for maximum overseas contracts secured whereas Ircon International Ltd. secured highest awards in the categories of maximum turnover, maximum foreign exchange earned and maximum foreign business attempted.

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PROJECT EXPORTS OF INDIA TOUCHES Rs. 1434 CRORE
RUDY GIVES AWAY OCCI EXPORT AWARDS

New Delhi: November 23, 2002

Project exports from India have touched a value of Rs. 1434 crore during the year 2001-02 registering a growth of 5.4% over the previous year. Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, informed this here today, while giving away the export awards of Overseas Construction Council of India (OCCI). With the increasing competition from countries like China & Korea, the need for strategic approach for export promotion in the construction industry is of paramount significance, he said. Shri Som Datt, Chairman, OCCI was present in the function along with representatives of the construction and consultancy industry.

Shri Rudy said that the economic reforms had only touched the fringes of the construction sector and stressed the need for using equipment oriented technology to make their presence felt in the sector. The Minister told that the government has already withdrawn customs duty for re-importation of equipment and machinery and had simplified various procedures for the benefit of exporters. He said that Indian companies had bid for over 100000 crore of overseas contracts with a 20% success rate and asked the representatives to be more aggressive in the overseas business. The Minister emphasised that the consultancy firms and construction companies must work in tandem jointly to secure international projects.

Voltas Ltd. got the highest award for maximum overseas contracts secured whereas Ircon International Ltd. secured highest awards in the categories of maximum turnover, maximum foreign exchange earned and maximum foreign business attempted.

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Government of India
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IMPORT OF SENSITIVE ITEMS BEING CLOSELY MONITORED

New Delhi: November 22, 2002

Subsequent to removal of quantitative restrictions (QRs) last year, 300 items were identified as sensitive items. Import of these items is being monitored regularly. As per the provisional estimate import of these items for the first six months of the current financial year is Rs. 6487 crore as compared to Rs. 5854 crore for the corresponding period of last year thereby showing an increase of 11%. The growth in imports in general for the same period is 12%. Detailed analysis of these sensitive items show that the growth is accounted for mainly due to increase of import of crude palm oil to the extent of Rs. 1434 crore. For regulating the import of palm oil, the government has already fixed tariff value for assessment of custom duty which is being revised from time to time. This was stated by Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, in a written reply in the Lok Sabha today. In reply to another question, Shri Rudy said that as part of the ongoing negotiations in agriculture in the WTO, the US and some other members of the WTO favour steep reductions in tariffs on the basis of a "Swiss Formula" have also been suggested for developing countries by some members. India supports minimal reductions in tariffs on a bound rate basis for developing countries and flexibility to address specific concerns of domestic agricultural production and of our farmers.

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STEPS TO SAFEGUARD SERVICE SECTOR

New Delhi: November 22, 2002

As per the WTO’s Annual Report 2002, the international trade in services registered an average annual growth of 6% during 1990-2000 before declining by 1% in 2001 under the impact of overall slowdown in the world economy. The Department of Commerce has recently set up an Expert Group consisting of persons having experience in the trade in services. The Expert Group will advise the government on various issues relating to Services negotiations, particularly on cross-cutting issues. As the Expert Group is an advisory body, no formal report is expected to be submitted by it. The Department of Commerce has also suggested to the Administrative Ministries/Departments concerned with various service sectors to constitute a Focus Group within each Ministry/Department to evaluate the requests and offers that may come up during the negotiations and to help formulate the stand to be taken on the concerned service sector. It is understood that Ministries/ Departments concerned are taking action in this regard. This was stated by Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, in a written reply in the Lok Sabha today.

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PROMOTION OF SPECIAL ECONOMIC ZONES

New Delhi: November 22, 2002

Major steps taken to promote Special Economic Zones (SEZs) include duty-free import/domestic procurement of goods for development, operation and maintenance of SEZs and SEZ units; external commercial borrowing without any maturity restriction through recognised banking channels; facility to set up of Overseas Banking Units in SEZ, Foreign Direct Investment (FDI) up to 100% to develop township within the SEZs with residential, education and recreational facilities, freedom to make overseas investment out of Export Earners Foreign Currency (EEFC) account; 100% FDI in manufacturing sector through automatic route barring a few sectors and exemption from minimum area requirement of 1000 hectares for port based SEZs.

13 SEZs have so far been approved for establishment on the basis of the request received from the State Governments/private promoters. The Zones are at various stages of implementation. This was stated by Shri Rajiv Pratap Rudy, Minister of State for Commerce and Industry, in a written reply in the Lok Sabha today. In reply to another question, he said there was no proposal to set up any SEZ by the central government in North Eastern Region.

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PRIORITY TO FARMERS, SSI INTERESTS IN WTO MARKET ACCESS NEGOTIATIONS –
ARUN SHOURIE AT SYDNEY MINI MINISTERIAL

New Delhi: November 18, 2002

Shri Arun Shourie, Minister for Disinvestment and Commerce & Industry, has indicated that safeguarding the interests of farmers and small scale industrial (SSI) units would get priority in India’s approach to the WTO market access negotiations. The Minister made it clear at the informal meeting of the World Trade Organisation (WTO) Trade Ministers which concluded in Sydney last week that in agriculture, measures to secure food security and rural development was a priority factor in India’s approach to the market access negotiations. Participating in the Session on Market Access at the two-day informal meeting which was hosted by the Australian government, Shri Shourie said that in the non-agricultural sector, the need to safeguard certain sensitive sectors of the Indian economy such as the SSIs would be of paramount importance in view of their vulnerability in a situation of liberalisation.

Circumstances of the developing countries would have to be reckoned in the negotiations, Mr. Shourie said, while pointing out that around two-thirds of India’s population depended on farming for their livelihood and small-scale units provided employment at low capital cost to 18 million workers. In particular, he drew attention to the fact that fluctuations in international prices of agricultural commodities could erode rural incomes and urged that non-tariff measures should not prevent access of India’s agricultural products to the markets of developed countries. Similarly, substantive benefits to developing countries could accrue only if the developed countries eliminated tariff peaks and tariff escalations that are prevalent in sectors of importance to us, like textiles, leather, marine products etc, he said.

He emphasised that the mandate for reducing or eliminating tariff peaks, tariff escalations, high tariffs and for removing non-tariff barriers – particularly on products of interest to developing countries - in the Doha Declaration was specific. Special and differential elements and the importance of not insisting on full reciprocity from developing countries in market access had also been provided in the Doha mandate, the Minister said, adding that the current negotiations should proceed in the spirit of this mandate. He pointed out that proposals that some developed countries were pressing – like "zero for zero" and "tariff harmonisation" – ran counter to what Doha had mandated.

"The flexibilities that developing countries require in the areas of agriculture and non-agricultural products and services should not be circumscribed and market access should be calibrated in a manner that it does not create economic upheaval and consequently social and political unrest, specially in the developing countries", Shri Shourie said.

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New Delhi: 15 November 2002

Mr. Arun Shourie, Minister for Disinvestment, Commerce and Industry and Development of North Eastern Region, today spelt out India’s priorities in the area of Market Access in the WTO negotiations by clearly stating that the flexibilities that developing countries require in the areas of agriculture and non-agricultural products and services should not be circumscribed and that market access should be calibrated in a manner that it does not create economic upheaval and consequently social and political unrest, specially in the developing countries. Participating in the Session on Market Access at the Informal WTO Trade Ministers’ Meet hosted by the Government of Australia in Sydney this afternoon, Mr. Shourie made it clear that in agriculture, measures to secure food security and rural development would be among the factors in India’s approach to the negotiations,

In the non-agricultural sector, he said that the need for safeguarding certain sensitive sectors of the Indian economy that would be particularly vulnerable in a situation of liberalisation such as the small-scale industrial units in the country would be of paramount importance. Circumstances of the developing countries would have to be reckoned in the negotiations, Mr. Shourie said, pointing out that around two-thirds of India’s population depended on farming for their livelihood and small-scale units provide employment at low capital cost to 18 million workers. In particular, he drew attention to the fact that fluctuations in international prices of agricultural commodities could erode rural incomes and urged that non-tariff measures should not prevent access of India’s agricultural products to the markets of developed countries. Similarly, substantive benefits to developing countries could accrue only if the developed countries eliminated tariff peaks and tariff escalations that are prevalent in sectors of importance to us, like textiles, leather, marine products etc, he said.

He further underlined that the mandate for reducing or eliminating tariff peaks, tariff escalations, high tariffs and for removing non-tariff barriers – particularly on products of interest to developing countries - in the Doha Declaration was specific. Special and differential elements and the importance of not insisting on full reciprocity from developing countries in market access had also been provided in the Doha mandate, the Minister said, adding that the current negotiations should proceed in the spirit of this mandate. He pointed out that proposals that some developed countries were pressing – like "zero for zero" and "tariff harmonisation" – ran counter to what Doha had mandated.

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GOVERNMENT TO INCREASE OUTLAY FOR FOCUS AFRICA PROGRAMME IN NEXT
FINANCIAL YEAR- RUDY

New Delhi: November 15, 2002

Keeping in view the immense success of the Focus Africa Programme during the current financial year, the government has proposed to increase the outlay during the next financial year. Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, stated this here today, while inaugurating the seminar titled "Export Potential Study of Focus African Countries based on Bilateral and Global Trade Statistics of India and Sub Saharan Region". The government has already sanctioned about Rs. 20 million to various councils/ organisations for undertaking various export promotion activities during the current financial year, Shri Rudy said. Shri L. Mansingh, Director General of Foreign Trade, was also present in the seminar along with heads of Missions of Sub Saharan countries and representatives of the trade & industry.

Shri Rudy informed that the EXIM Bank had so far extended 28 lines of credit (LOC’s) for an aggregate value of Rs. 414 crore to enhance the trade with Sub Saharan countries. MOUs are being finalised with these countries on technical assistance and cooperation in several sectors- Water Resources with Ethiopia, Health & Pharma with South Africa, he added. India’s exports to Sub Saharan Africa region during the first four months of this financial year (April-July 2002) increased to US$ 700 million from last year’s US$ 645 million showing a growth of 8.6%.

The study conduced by National Centre for Trade Information (NCTI) shows that India has a good potential for increasing its market share in Sub Saharan region for Chemicals specially pharmaceuticals, Food articles, Paper products & Engineering goods including vehicles, Iron & Steel articles etc. It shows that Apparels, Coir Floor Coverings, semi-milled rice; Footwear uppers and Diamonds are the items where India possesses a high revealed comparative advantage.

The study aims at determining the global import trend of commodities by the countries under focus while identifying the potential product groups, major supplier countries and India’s position. The study goes on to map the imports of specific products at the 6 digit HS Code level and matches the same with India’s export capabilities to arrive at a specific product basket which has a high export potential from India to each of the countries under study. The seven Focus countries in the Sub Saharan region include Ethiopia, Ghana, Kenya, Mauritius, Nigeria, South Africa and Tanzania.

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New Delhi: November 15, 2002

Mr. Arun Shourie, Minister for Disinvestment, Commerce & Industry and Development of North Eastern Region, has urged the World Trade Organisation (WTO) to ensure faster progress on Implementation and Special and Differential (S&D) Treatment issues so that positive results on issues of priority to India and other developing countries are achieved by the December deadline and also, to prepare a road map for settling the remaining Implementation Issues immediately thereafter - before the next Ministerial Conference at Cancun. Participating in the Session on Implementation, Special and Differential Treatment and trade-related Technical Assistance on the concluding day of the Informal WTO Trade Ministers’ Meeting hosted by the Government of Australia in Sydney today, Mr. Shourie emphasised that significant progress must be achieved within a tight time-frame in these important areas and stressed that this would be critical for the credibility of the multilateral trading system. He said this in the context of the feeling in many developing countries that progress in areas of interest to them was slow while that in areas like Market Access had been faster. This gap must be bridged. The Minister also made the point that all implementation provisions of the WTO agreements should be made precise, effective and operational as was decided at Doha, rather than simply focussing on conceptual issues.

On Special and Differential Treatment India has submitted three papers - individually or jointly with others – covering as many as 11 S&D proposals relating to Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Import Licensing, Subsidies and Countervailing Measures and Disputes Settlement Understanding. Mr. Shourie suggested that all these proposals be examined and tangible progress be achieved in these areas by the end of this year.

Articulating India’s views on TRIPS (Trade Related Aspects of Intellectual Property Rights) and Public Health at a Session on the subject during the Informal Meet earlier in the day, Mr. Shourie said that the Doha Declaration had rightly placed humanitarian issues above commercial considerations and urged expeditious decision on para 6 of the Doha Declaration to address the problems of countries with limited or no manufacturing capacity in the pharmaceutical sector. This would ensure access to essential medicines for their people by enabling them to procure medicines from other sources. While noting that the draft of a possible decision on para 6 circulated by the TRIPS Council earlier this week has several positive features, Mr. Shourie said that further clarification and discussions would be needed on disease and product coverage, assessment of manufacturing capacity and the legal mechanism in order to move towards a solution. He emphasised that the ambit of Article 6 should not be circumscribed. The Article refers to "public health problems" and is not confined to "epidemics" or "infectious disease" as some developed countries were trying to make out. Similarly, not just "kits" but everything that is required to deal with the "public health problem" must be eligible for compulsory licensing. In this context, Mr. Shourie also recalled that the Australian delegate at an NGOs meeting last evening had quoted a statement made by the World Health Organisation (WHO) at the WTO TRIPS Council to the effect that "limited exception under Article 30 is most consistent with the public health principle and this solution will enable the most expeditious response to a public health problem". The European Parliament has also recently adopted an amendment to the European medicines regulations based on this principle to the effect that "Manufacturing shall be allowed if the medicinal product is intended for export to a third country that has issued a compulsory licence for that product, or where a patent is not in force and if there is a request to that effect from the competent public health authorities of that third country". This perspective should be kept in mind while working out a solution, Mr. Shourie said. The new system should not curtail the existing flexibilities available to supplying countries under the TRIPS Agreement, the Minister added.

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SHEKHAWAT ASKS INDIAN INDUSTRIES TO STRIVE FOR EXCELLENCE TO SURGE AHEAD IN GLOBAL COMPETITION
VICE PRESIDENT INAUGURATES INDIA INTERNATIONAL TRADE FAIR 2002
JUDICIOUS BLEND OF TECHNOLOGY-INVESTMENT NECESSARY IN INFRASTRUCTURE SECTOR – RUDY

New Delhi: November 14, 2002

The Vice President, Shri Bhairon Singh Shekhawat, inaugurated 22^nd edition of the India International Trade Fair (November 14-27) 2002 here today. Speaking at the inaugural function, Shri Shekhawat asked Indian trade & industry to strive for the excellence to surge ahead in the tough competition posed by the globalisation. Describing the Trade Fair as a unique display of the competitive view of the global entrepreneurs, the Vice President said that it had provided the best opportunity to display the skills of the artisans and craftsmen of the rural India. Mr. Alfonso Dulanto, Minister of Mining, Government of Chile, Shri Shanta Kumar, Union Minister of Rural Development, Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, Shri J. Vasudevan, Chairman & Managing Director, India Trade Promotion Organisation (ITPO) and Shri Ranjan Chatterjee, Executive Director, ITPO were present in the function along with Members of Parliament, Diplomats of various Foreign Missions, Ministers from participating State Governments and representatives of trade & industry.

Shri Shekhawat underlined the fact that Indian products had potential to withstand the competition because of its quality, artistic value and relatively lower price. At the same time in the current WTO regime Indian industry should make every possible efforts to maintain the quality and standards, he added. Later, Shri Shekhawat also inaugurated "SARAS" pavilion of handicraft/rural products set up by the Ministry of Rural Development in association with CAPART.

In his address, Shri Rudy underlined the need to have a judicious blend of technology-investment in the infrastructure sectors of power, transport and communications. He said that the business achievements at this fair were the best indices of the distance covered by India’s economic reforms besides being a vindication of the efforts to achieve greater levels of value-addition in India’s exports. "Apart from substantial export orders and enquiries, a number of MOUs for two way technology transfers are also among the success stories of this fair", he mentioned. The Minister termed this year’s theme "Services Export and Tourism" as relevant and appropriate in the current context since services sectors like IT and Telecom have been the main driving force of Indian economy in recent years. He congratulated ITPO for completing 25 years of valuable service to trade & industry, which had helped to further the process of Indian economy with the global mainstream.

Over 7000 firms from India and overseas are taking part in this fair. These include leading companies from China, Malaysia, Chile, Tunisia, Brazil, Turkey, Hong Kong, Ukraine, Russia etc. The Special Displays include Techmart, Hudco-Buildtech, Saras, Good Living etc., comprising a wide range of products and services including engineering, automobiles, electronics, chemicals, drugs & pharmaceuticals, leather, textiles, telecommunications, jute, rubber, handicrafts, jewellery, consumer goods and other sectors.

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ARUN SHOURIE CALLS FOR NEGOTIATIONS ON A BROAD FRONT TO FULLY TAKE ON BOARD THE INTERESTS OF
DEVELOPING COUNTRIES – NEED TO RE-ESTABLISH CREDIBILITY OF WTO SYSTEM UNDERLINED
SYDNEY INFORMAL WTO MINISTERS MEET GETS UNDER WAY

New Delhi: 14^th November, 2002.

Shri Arun Shourie, Minister for Disinvestment, Development of North Eastern Region and Commerce and Industry, who is heading the Indian delegation to the Informal WTO Trade Ministers Meeting at Sydney, has underlined the need to ensure that the process of ongoing multilateral negotiations is carried forward on a broad front so that the interests of developing countries like India are fully taken on board and the credibility of the multilateral trading system is re-established. Participating in informal interactions with the Trade Ministers and other bilaterals today, Shri Shourie said that "we must not move away from the core of the Doha Declaration which is essentially trade and development" and not issues which might be extraneous to this core such as labour, environment and the like. Discussions on a broad front were needed with a view to accommodating issues of concern to different countries at different stages of development, the Minister stressed. During the informal exchange of views, Shri Shourie also suggested the setting up of a monitoring mechanism to ensure that obligations taken by member countries do not act to their detriment in any manner.

Shri Shourie put forward the suggestion that in the area of technical assistance, the multilateral trading system should focus not only on capacity building to enable developing country members to participate effectively in negotiations but should also actively help them in overcoming barriers to trade. This would be in keeping with the Doha Ministerial Declaration which had put development at the centre of multilateral trade negotiations by underlining the important role that international trade could play in the promotion of economic development and alleviation of poverty.

During the informal exchange of views, Mr. Supachai Panitchpakdi gave the Trade Ministers an overview of the post Doha scenario and an assessment of the priorities and challenges on the road to the next Ministerial at Cancun. Ministers exchanged views on a broad range of issues relevant in the context of the ongoing post Doha negotiations – particularly TRIPS and Public Health and issues relating to Implementation and Special and Differential Treatment which are of significance to developing countries. Trade Ministers of about 25 countries are participating in the 2-day Informal Meeting including India, Brazil, Mexico, China, Japan, Kenya, US and the EU.

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ARUN SHOURIE TO ATTEND INFORMAL WTO MINISTERIAL IN SYDNEY

New Delhi: November 11, 2002

Shri Arun Shourie, Union Minister for Disinvestment with additional charge of Commerce & Industry, will be leading the Indian delegation to the informal meeting of World Trade Organisation (WTO) Ministers, scheduled to be held in Sydney (Australia) on 14^th and 15^th November, 2002. The delegation includes Commerce Secretary, Shri Dipak Chatterjee; Shri S.N. Menon, Additional Secretary; Ministry of Commerce & Industry and Shri K.M. Chandrasekhar, Ambassador of India to the WTO. The informal meeting of WTO Ministers (mini-ministerial), being hosted by the Government of Australia, is intended to facilitate an exchange of views amongst WTO Ministers on the progress of negotiations in the context of the Doha agenda and the next Ministerial meeting of the WTO in September 2003 in Mexico (Cancun).

Trade Ministers from about 25 member countries are expected to participate in the Sydney Meet including Brazil, Canada, China, Columbia, Egypt, the European Union (EU), India, Indonesia, Japan, Kenya, Republic of Korea, Malaysia, Mexico, New Zealand, Nigeria, Singapore, South Africa, Switzerland, Thailand, Trinidad & Tobago and the US.

The post-Doha issues listed in the agenda of the Sydney Meet include Implementation issues, Special & Differential Treatment, TRIPS & Public Health and Market Access.

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New Delhi: November 11, 2002

India and Finland have decided to cooperate in the fields of energy, healthcare, environment, information technology as also in the areas of science & technology and civil aviation. This was decided in the 13^th Meeting of Indo-Finnish Joint Commission which met here today. The Indian delegation was led by Shri S.N. Menon, Additional Secretary, Ministry of Commerce & Industry and the Finnish delegation was led by Mr. Antti Kuosmanen, Ambassador, Director General for External Economic Relations, Ministry of Foreign Affairs.

The two sides discussed about the possibilities of long-term cooperation through joint ventures in the field of hydro-power and bio-mass energy in which Finland has done remarkably well. In the field of environment, the two sides expressed that the establishment of Joint Working Group, the first meeting of which was held on 18 October, 2002 in New Delhi, would help in speeding up cooperation, the focus of which would be on the forestry and paper and pulp industries. The Indian side informed that the National Association of Software and Service Companies (NASSCOM) was keen to initiate joint ventures between the two countries in the IT sector. In the field of science & technology, the Finnish side is considering to send to India a broad-based fact-finding mission.

The Finnish side noted that their national carrier Finair has expressed its desire to have two weekly flights to Mumbai. They also raised the concerns such as tax on fuel uplifted as well as high landing and handling fees as disincentives to initiate normal commercial flights to India upon which the Indian side said that these matters would be taken up with the concerned authorities.

The two sides exchanged views on the WTO and agreed on the importance of successfully concluding the ongoing Doha Development Round of trade negotiations for the benefit of all WTO members.

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SPECIAL FUND EARMARKED FOR PROMOTING EXPORTS
FROM STATES – RUDY

New Delhi: November 08, 2002

A Special Fund has been earmarked by the government for providing financial assistance to the States towards infrastructural development for promoting their exports. This was stated by Shri Rajiv Pratap Rudy, Minister of State for Commerce & Industry, while inaugurating the first Seminar under the aegis of the Directorate General of Commercial Intelligence & Statistics (DGCI&S), Kolkata, of the Ministry of Commerce & Industry on "Post-WTO Trade Scenario – An Indian Perspective" in Kolkata today. Stating that the government have taken a number of policy initiatives for promoting exports in the highly competitive trade environment of the WTO regime, Shri Rudy indicated that clearance had been given for establishing Special Economic Zones (SEZs) and Agri Export Zones (AEZs) in different parts of the country wherein a number of concessions and incentives would be provided to the exporters. Listing out the other major policy initiatives, Shri Rudy said that quantitative restrictions on imports and exports had been withdrawn from all items, except for a few sensitive ones; export restrictions like those of quantity, packaging etc., were lifted for a number of agricultural and allied products; and funds were also being provided for implementing various schemes to promote exports from the handicrafts and cottage industry sectors. "While imports have been liberalised, its growth is being closely monitored and remedial actions being taken so as to ensure that there is no sudden upsurge of imports. However, critical analysis and interpretation of WTO-related issues and value-added quality information are the needs of the hour to assess the impact of the policies and reviewing them from time to time", Shri Rudy said.

The DGCI&S, Kolkata, was formed as a statistical branch of the then Department of Commerce and Industry of the Government of India, in 1872. Its functions were to estimate and quantify the statistical information relating to agriculture, industries, trade, commerce etc. Over the decades, the functions of this organisation had changed, at present leading to compilations of statistical information and dissemination of trade information to users in India and also abroad.

"It is needless to say this premier organisation, which compiles and provides continuously statistical information of India’s foreign trade and commerce, over the decades, has a new role to play in the gamut of new international economic order. Though the DGCI&S, Kolkata, is the official repository and vendor of statistical information on India’s foreign trade and all the ministries and departments of the Government of India are the users of its data-base, yet there is another aspect of data reposition, which this organisation has been undertaking: this is sustaining the post – Uruguay Round WTO Secretariat at Geneva, with the dissemination of published statistical information on India’s foreign trade on a regular basis. As the WTO – function of dissemination of the Integrated Data Base (IDB) and the Consolidated Tariff Schedules (CTS) Data-base compiled by the WTO, has the primary aim of providing technical assistance to the developing and less developed member-nations to enable them to participate more effectively in the WTO-negotiations in the future, so the DGCI&S, Kolkata, is to provide its data-base to the official and accredited agencies of the country for a better information system on trade and commerce", Shri Rudy said.

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New Delhi: November 7, 2002

Indian exports to Finland have registered an increase of 28% in the financial year 2001-02. In order to enhance the bilateral commercial and economic relations, 13^th meeting of the Indo-Finnish Joint Commission is taking place in New Delhi on 11^th November, 2002. This was indicated by Shri Rajiv Pratap Rudy, Minister of State for Commerce and Industry, when he called on Mr. Jari Vilen, Minister for Foreign Trade of Finland, here today. Shri S.N. Menon, Additional Secretary, Department of Commerce, was present in the meeting along with senior officials of Ministry of External Affairs and Department of Industrial Policy & Promotion.

Shri Rudy apprised the visiting Minister about the economic reforms India has initiated over the last decade and expressed the need to enhance the current level of bilateral trade which was about US $ 250 million. He indicated that India was willing to have joint ventures with Finland in the area of Drugs & Pharmaceucticals, Information Technology, Food Processing, Marine Products, Marble & Tiles and Cut & Polished Diamonds. Shri Rudy informed that India was actively participating in all the elements of the Doha Work Programme and said that it was important that a due attention be paid by WTO members to the development-focus of the Doha mandate.

The visiting Minister said that his country view India as an enormous hub for regional activities for Finland companies. He informed that Finland had best expertise in sectors of Energy, Environment Protection, Information & Communication Technology and Health Care. Finland has 25 to 30% global market share of mobile phones, 75% in meteorological equipments and 25% in metal detectors. Regarding WTO, he said that Finland shared India’s concerns and commitment towards Doha negotiations. He also indicated that Finland had excellent opportunities for film industry and invited Indian film industry to take advantage of the same. During the meeting, he pointed out that the frequency of direct flights between the two countries be raised, as there were very few direct flights available. The Indian Minister assured him that he would take up this issue with the Ministry concerned.

The major items of Indian exports are RGM cotton accessories, machineries, leather, electronic goods, pharmaceuticals etc. The major items of Indian imports include electronic goods, machineries, newsprint, computer software etc. The 12^th meeting of the Joint Commission was held in Helsinki in June 2000.

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New Delhi: November 01, 2002

India’s exports during April-September, 2002-2003 are valued at US $ 23974.30 million which is 13.49% higher than the level of US $ 21123.85 million during April- September, 2001-2002. In rupee terms, the exports were Rs.116946.04 crore, during April- September, 2002-2003 which is 17.51% higher than the value of exports during April- September, 2001-2002.

Exports during September, 2002 are valued at US $ 3994.62 million which is 7.90% higher than the level of US $ 3702.01 million during September, 2001. In rupee terms, the exports were Rs. 19349.93 crores, which is 9.71% higher than the value of exports during September, 2001.

India’s imports during April- September, 2002-2003 are valued at US $ 28277.41 million representing an increase of 8.49% over the level of imports valued at US $ 26065.47 million in April- September, 2001-2002. In Rupee terms the imports increased by 12.34% during April- September, 2002-2003.

Oil imports during April- September, 2002-2003 are valued at US $ 8732.17 million which is 13.43% higher than oil imports valued at US $ 7698.47 million in the corresponding period of last year. Non-oil imports during April- September, 2002-2003 are estimated at US $ 19545.24 million which is 6.41% higher than the level of such imports valued at US $ 18367.00 million in April- September, 2001-2002.

Imports during September, 2002 are valued at US $ 5110.65 million registering an increase of 30.97% over the level of imports valued at US $ 3902.12 million in September, 2001. In Rupee terms the imports increased by 33.16% during September, 2002-2003.

The trade deficit for April-September, 2002-2003 is estimated at US $ 4303.11 million which is lower than the deficit at US $ 4941.62 million during April-September, 2001-2002.

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