INDIA 10th LARGEST TRADING PARTNER OF AUSTRALIA |
The MLA, Deputy Premier Minister of Western Australia, Treasurer & Minister for Development, Mr. Eric Ripper meeting with the Union Minister for Commerce & Industry, Shri Kamal Nath, in New Delhi on July 14, 2008.
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India and Australia have agreed to explore possibilities for economic engagement between the two countries. During the bilateral meeting with the Deputy Premier of Western Australia Mr. Eric Ripper, Shri Kamal Nath, Union Minister of Commerce & Industry stated that Australia is 10th largest merchandise trading partner and 9th largest merchandise import market and informed that the bilateral trade in 11 months of the current year have reached a level of US $ 2 billion.
To further boost the bilateral cooperation between both countries, a Joint Study Group to examine the feasibility of a Free Trade Agreement has been set up and Government is expecting the report by the end of 2008. Australia is the 18th largest source of FDI in India. The top sectors attracting investment in India from Australia has been in the areas of: Metallurgical Industries (25.56%), Service Sector (financial &non-financial) (14.62%), Tele communication (10.48%), Consultancy Services (8.77%) & Automobile Industry (7.10%).
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(From January 2000 to March 2008.) Western Australia plays an important role in our bilateral trade, accounting nearly half of the total trade. Therefore, there are considerable opportunities for both countries to explore their business and trade potential.
Mr. Eric Ripper visit is a continuance of the initiatives that were stated an year ago by Australia’s Foreign Minister, Mr. Stephens Smith, who is from Western Australia and emphasizes on developing trade and business relations with India. Western Australia was the first country to open a representative office in India and has already established investment and trade offices in Mumbai and Chennai.
Due to the economic importance of Western Australia several countries including China, Japan, USA, and Malaysia have Consulates General in Perth. Shri Nath has assured that India will also consider establishing a presence in Perth to harness our common trade and business potential. |
G-5 Political Declaration |
The Prime Minister, Dr. Manmohan Singh, the President of China,
Mr. Hu Jintao, the President of Mexico, Mr. Felipe Calderon Hinojosa, the President of Brazil, Mr. Luis Inacio Lula Da Silva and the President of South Africa, Mr. Thabo Mbeki in a group photo of five Outreach Countries (O5) during G-8 Summit at Sapporo, Japan
on July 08, 2008.
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Here is the political declaration made by the Leaders of Brazil, China, India, Mexico and South Africa, gathered in Sapporo, Japan, on 8 July 2008.
1. Mankind is at a critical historical crossroad. The potential of globalization and innovation to raise living standards is unprecedented, but so are social and sustainable development challenges around the world.
2. The interrelationships of a global economic slowdown marked by financial uncertainty, the persistence of trade protectionist distortions, soaring food and oil prices, and the threats posed by climate change add complexity to the current scenario.
3. Our increasing interdependence demands an integrated and concerted response to these global challenges. We must ensure development and prosperity on a sustainable path, both within and across nations. That is the historical challenge of our generation. To achieve this fundamental goal, we must act in a coordinated manner to ensure equitable growth with care for the environment, taking appropriate account of cross-border interactions in fulfillment of our shared responsibility.
World Economy:
4. The global economy continues to expand, but at a slower rate than in previous years. Most emerging and developing economies have proved resilient so far to adverse circumstances. Nevertheless, the international community as a whole faces important policy challenges to maintaining financial stability and mitigating global economic risks. Headline inflation is of particular concern.
5. We reaffirm our commitment to the establishment of a stable and orderly international financial system, more transparent and legitimate. The voice and representation of developing countries in the decision making of international financial institutions should be significantly improved, especially at the International Monetary Fund and the World Bank.
6. Given current global macroeconomic imbalances, it is essential to enhance policy coordination not only among advanced economies but also with emerging market economies, including by reinforcing existing multilateral mechanisms for coordination. The Financial G-20 is an appropriate forum for this endeavor.
7. The global financial architecture and its surveillance capacities must be also strengthened to contribute to the prevention and resolution of potential financial crises but, more |
importantly, to support sustainable development. In particular, it is necessary to provide international financial institutions with an adequate array of instruments to preserve global financial stability and smoothen the supply shocks derived from higher food and oil prices, especially in support of least developed and middle income countries.
8. The world economic outlook lends urgency to the establishment of a just, open, reasonable and non-discriminatory international trade system. It is essential to achieve an early conclusion to the Doha Round that fully supports development in accordance with its agreed mandate. Developed countries must dismantle barriers and distortions, especially agriculture subsidies and domestic support that affect the overall efforts of developing countries. This would provide a much needed impetus to global economic growth and would positively contribute to an enabling environment for development.
Food Security
9. The rise in global food prices poses a new challenge to the fight against poverty and hunger. To ensure food security is a shared responsibility that calls for swift and resolute action by all Governments and relevant actors.
10. The world produces enough food, but not enough people have access to it. We call upon the international community to devise better ways and means of producing and distributing food. Multi-billion agricultural trade-distorting support in developed countries have hampered the development of food production capacity in developing countries, critically reducing their possibilities of reaction to the present crisis. We therefore reaffirm the imperative of creating an enabling international environment for agro-produce related trade, establishing a just and reasonable international trade regime for agricultural products and concluding the Doha Round with meaningful commitments to agricultural subsidies reductions. Also, it is necessary to combat speculation and minimize the use of measures that could increase volatility of international food prices.
11. The food security crisis demands a rapid and substantial increase in the allocation of resources to support rural development and combat hunger and poverty. We urge developed countries, in particular, to increase their emergency aid at an early date. Innovative mechanisms of financing and enhanced flows of investment can also play an important role in addition to the required increase in flows of official aid.
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PM's attends G8-Outreach Summit
Prime Minister was in Japan to attend the Summit Meeting of the G8 and Outreach Countries (Brazil, China, India, Mexico and South Africa) being hosted at Hokkaido Toyako on July 9 by the Japanese G8 Presidency. Prior to the meeting with the G8 leaders, he also attended a meeting of the G5 group of Outreach countries being hosted by the President of Mexico on July 8.
Over the years, India ’s participation in the G-8/G-5 dialogue process has enabled it to articulate its concerns on a wide range of issues in a forthright manner, on an equal footing. Today, India ’s views are heard with respect, and there is recognition of the fact that solutions to global issues require India ’s involvement.
India during the Summit presented India ’s perspectives on a wide range of global issues, including the state of the world economy, development, trade, transfer of technology, energy security and food security. The impact of the sharp rise in fuel prices on the global economy and the need for joint action by both producing and consuming nations was discussed. The Prime Minister also participated in the meeting of the Leaders of Major Economies at which the issue of climate change was discussed.
The Prime Minister in his speech conveyed to the international community India ’s belief that climate change, energy security and food security are interlinked, and require an integrated approach. The National Action Plan on Climate Change which was released recently underscores our commitment to address the challenge of climate change, and outlines concrete steps to meet this challenge. At the international level, we will work with others to find solutions within the UN Framework Convention on Climate Change and the Bali Road Map, based on the principle of common but differentiated responsibilities and respective capabilities.
“In our view there can be no solution without taking into account the developmental imperatives and aspirations of developing economies. For us, the foremost priority is the removal of poverty, for which we need sustained rapid economic growth.” said the Prime Minister in a statement.
During the visit bilateral meetings were also held with the Prime Minister of Japan, and some of the other leaders present, including those of Australia , Canada , China , Indonesia , Mexico , Republic of Korea , Russia , USA and the Secretary General of the United Nations. |
Trust vote leads to a feel good factor
by Ashok Handoo
The UPA Government’s victory in the Parliament on the trust vote has sent a strong message to the country and the world that the Indian economy is destined to move forward, galloping, in the days ahead. The Finance Minister Shri P Chidambaram is confident that the growth rate will be between 7 to 8 percent in the current year. The average growth during the NDA rule was 5 to 6 percent. Last year we touched the 9.1 percent growth rate.
What has been causing worry is the inflation factor that has touched 12 percent mark and is upsetting every section of the people of the country. But on this front too, good days seem to be in sight. With the Government free from the confidence vote distraction, it can now attend wholeheartedly to the task of tackling inflation. The Government has already set inflation and revitalizing the farm sector as its two most important priorities.
During the debate in Parliament on the Trust Vote the Prime Minister Dr. Manmohan Singh devoted a good portion of his time to the tasks ahead in the economic field. He stressed that the Government will control inflation without hurting growth and the investment in agriculture will be increased to boost output. Farm credit is expected to cross the target of Rs.2,80,000 crores in the current fiscal as against Rs. 2,50,000 crores last year.
It was only Rs. 86,000 crores in 2003-04. Quite obviously, the follow up of the Indo - US civil nuclear deal will be on a fast track. After all, it is the energy, particularly electricity, which will form the core of infrastructural development in future. The other areas that will be attended to are the reforms in Insurance and the pension field, for which the bills are pending for a long time. The new phase should see raising of Foreign Investment ceiling in the Insurance sector from the current 26 to 49 percent.
Soon after winning the trust vote, the financial atmosphere in the country has started looking up. Indian stock and bonds are rising and the value of the rupee is increasing. There is a better atmosphere for the financial markets. The feel good factor is all pervading.
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