Trade 03 May 2016 by Tojo Jose

No retrospective sunset policy for SEZs: Commerce Minister

No retrospective sunset policy for SEZs: Commerce Minister

The government is not in favour of brining a retrospective sunset policy in the SEZ review, hinted commerce Minister Nirmala Sitharaman at the Loksabha. The commerce Minister added that government will not hurt the industry by imposing a retrospective withdrawal of an already declared tax concession like the sunrise clause. India’s SEZs are slow performers on export front compared to similar industrial and export agglomerations abroad.   In a recent statement in the Parliament, the Minister stated that ‘special economic zones (SEZs) have seen a slowdown in terms of exports, increased number of applications for denotification, slower operationalisation and fewer n

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Trade 19 Apr 2016 by Tojo Jose

Export registers lowest figures in five years; oil imports declines by 40 percent -says trade data

Export registers lowest figures in five years; oil imports declines by 40 percent -says trade data

The Commerce Ministry’s initial estimate of trade data for the disappointing year of 2015-16 shows that exports have dipped by 15.8% to $261 billion. Imports also declined for the year, registering a fall of 15.2%. imports for the year was $ 379 bn as against $ 448 billion during the previous year. This is the lowest export figure in five years. The previous low was 2010-11, where export figure was $ 242bn. Over the last one and a half year, India was registering monthly decline in exports. Exports figures have declined during the last fifteen months continuously. The major downward pulling factor for exports was the global slow down. According to the Ministry’s press

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Trade 07 Apr 2016 by Tojo Jose

Commerce Ministry to make additional promotional measures for reviving export growth momentum

Commerce Ministry to make additional promotional measures for reviving export growth momentum

Commerce Ministry to make additional promotional measures for reviving export growth momentum Amidst continuous decline in exports, the Commerce Ministry has brought out plans for providing stimulus to the sector. Exports have registered fifteenth straight month decline and is set to settle near to $300 bn this year. Different export revival measures were suggested at the meeting of the Board of Trade (BoT) on Wednesday. The BoT is a newly constituted body that has 72-member comprising mainly exporters and is chaired by the Commerce Minister. A major suggestion put forward by the BoT is to extend Priority sector lending norm to the MSMEs (Micro and Small and Medium Enterprises)

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Foreign Investment 29 Mar 2016 by Tojo Jose

Government allows 100 percent FDI in marketplace model of ecommerce

Government allows 100 percent FDI in marketplace model of ecommerce

The government has brought clarification to the long awaited FDI policy in the ecommerce sector. As per the notification by the DIPP (Directorate of Industrial Policy and Promotion), 100% FDI is allowed through automatic route in marketplace model of ecommerce. At the same time, FDI is not allowed in inventory model. The marketplace model is followed by most of the domestic firms including flipkart, snapdeal, and foreign competitor amazon. On the other hand, the inventory model is followed by Chinese aspirant Alibaba. The new policy gives a thumps down for Alibaba’s dream Indian market entry.  But for the Indian firms, the step is a relief as they can go for external f

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Trade 25 Jan 2016 by Tojo Jose

France to invest in India’s infrastructure sector

France to invest in India’s infrastructure sector

French companies will be making $10 bn investment in India’s infrastructure sector in the next five years.  France’ visiting President Francois Hollande’s delegation has revealed that French companies have invested $1 bn per year in India over the last five years. Hollande is the Chief Guest for this year’s Republic Day Ceremony. The most important agreement between the two sides will be the Rafale deal that may cost India around Rs 36000 crore. Agreement between the two on the deal is delayed because of the defence offset content India demanded with the original plan. "The majority of these investments are meant for the industrial sector, which mak

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Trade 22 Jan 2016 by Tojo Jose

India aiming to diversify crude import sources

India aiming to diversify crude import sources

In the context of changing environment, India is considering more diversification of its crude sourcing. At present, bulk of the crude -around 60%, is coming from Middle East.  Diversification of supplies means tat the country is reducing its dependence on crude imports from Middle East led by Saudi Arabia. Already premium pricing by Saudi Arabia, Iran’s entry into the world market and declining prices have added different dimensions to the crude market. India is third largest importer of crude after China and the US. Minister of Petroleum and Natural Gas Dharmendra Pradhan at the India –Africa Hydrocarbon Conference at New Delhi has indicated that as a part of t

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Trade 02 Jan 2016 by Tojo Jose

Rupee is poised to maintain its stable currency status in 2016

Rupee is poised to maintain its stable currency status in 2016

After being stable for two successive years, -2014 and 2015, chances are bright that the rupee may remain continue its bright run in 2016 as well. In 2015, the domestic currency lost only five percent against the US Dollar. This was after a stable performance in 2014 where it lost only two percent. The rupee’s stable performance during the last two years was remarkable in the context of continuing turbulence in the global economy. Other emerging market peers except the Chinese Yuan lost significant values during 2015. Currencies of Indonesia, Brazil and Russia have undergone steep depreciation over the last two years. The Chinese currency which was included in the SDR bask

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Foreign Investment 25 Dec 2015 by Tojo Jose

Russia gives token support to defence Make in India

Russia gives token support to defence Make in India

India and Russia signed nearly half a dozen projects that will support the Make in India Programme. Prime Minister Modi has highlighted the decision to manufacture Russia’s Kamov 226 Choppers under the Make in India platform. Kamov is a small, twin-engine transportation helicopter used as a utility vehicle. This is the first major defence programme that will be started under the programme. Another defence manufacturing agreement was signed in the private sector- between Anil Ambani’s Reliance Defence and Russia’s Almaz-Antey, to make air defence and radar system. The deal is expected to be valued at $6bn. Apart from these; the two sides haven’t reached any

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Trade 19 Dec 2015 by Tojo Jose

Sun Pharma gets notice from USFDA on manufacturing standards

Sun Pharma gets notice from USFDA on manufacturing standards

India’s largest pharmaceutical has ratified that the company has received a letter from USFDA- the drug regulatory authority of the US. The letter is a warning by the US agency citing that the Indian firm has violated manufacturing standards.   USFDA’s remark is against the Halol plant, which is its largest manufacturing facility for Sun pharma.  The facility supplies about 40 per cent of the products the company sells in the US. India is the major exporter of the pharmaceutical items in the US market. Similarly, the country holds largest number of USFDA approved manufacturing facilities outside the US. Several plants in India are inspected by the USFDA as

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Foreign Investment 12 Dec 2015 by Tojo Jose

Abe promises stronger India – Japan economic ties

Abe promises stronger India – Japan economic ties

Japanese Prime Minister Shinzo Abe has indicated that his country’s economic engagement with India is going to be stronger with his visit. Abe is making a historic visit in India where many projects with Japanese partnership are going to be finalized. The Japanese leader is expected to finalize a deal to construct Bullet train network between Mumbai and Ahmadabad by providing money and technology. Indications are that Japan is extending a soft loan for fifty years to India with an interest rate of 0.5%. Japan’s engagement with India is symbolic and strategic as well. Recently, the China has inaugurated a rail network across Karakoram ranges in Pakistan to link Chinese

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