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India can achieve 10-11 p.c. GDP growth
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| 04. TRADE AND ECONOMY |
INDIA CAN ACHIEVE 10-11 P.C. GDP GROWTH: ADB CHIEF |
The President of ADB,
Mr. Haruhiko Kuroda
With improved infrastructure facilities, India can increase the rate of its GDP (gross domestic product) growth to about 10-11 per cent, Asian Development Bank (ADB) President Haruhiko Kuroda said. |
Addressing a delegation of the Confederation of Indian Industry (CII) on the issue of infrastructure finance, Mr. Kuroda pointed out that with the development of infrastructure, India could hope to achieve a higher economic growth of about 10-11 per cent, as seen in the case of China, as compared to the current level of 8-9 per cent.
Dwelling on the problems in financing infrastructure projects, Mr. Kuroda noted that the public-private partnership (PPP) model could help in mobilising long-term resources that are required for upgrading the country’s infrastructure facilities.
India’s lead in designing and executing infrastructure projects through the PPP mode could then become a lesson for emerging economies, he said. |
Speaking at the meeting, Finance Ministry Joint Secretary Arvind Mayaram said that ADB’s involvement in infrastructure projects would deepen the appraisal capacity of domestic financial institutions.
Feedback Ventures Chairman Vinayak Chatterjee suggested that the ADB should increase its presence in the development of infrastructure projects at the State level and also get involved with such projects that were undertaken by the private sector. Other members of the CII delegation, including Punjab National Bank Chairman K. C. Chakrabarty and National Housing Bank (NHB) Chairman S. Sridhar noted that the Manila-based bank could play a major role in India’s infrastructure development by providing guarantees to projects in this sector. Source : The Hindu |
| EXPORT PROMOTION SCHEMES - SERVED FROM INDIA SCHEME |
Government of India has introduced "Served from India Scheme" to facilitate exporter of various type of services. The objective of this scheme is to accelerate growth in export of services so as to create a powerful and unique 'Served From India' brand, instantly recognized and respected world over.
Under this scheme, Service Providers of more than 100 services like Professional Services, Computer Related services, Hotels, Restaurants, Educational Services, Research and Development services, Communication Services, Construction and Related Engineering Services, Distribution Service, Environmental related Services, Tourism and Transport related Services, Health Related Social Service, Recreational, Cultural and Sporting Services etc. are entitled for Duty Credit Scrip. Service providers, who have a total foreign exchange earning of at least Rs.10 Lakhs in preceding or current financial year shall qualify for Duty Credit Scrip. For Individual Service Providers, the criterion is reduced to Rs.5 Lakhs of foreign exchange earnings.
However many types of services and / or remittances are not eligible for benefits under the scheme. These are:
1. Sources of foreign exchange earnings such as equity or debt participation, donations, receipts of repayment of loans etc. and any other inflow of foreign exchange, unrelated to rendering of service, would be ineligible.
2. Foreign Exchange remittances:
I. related to Financial Services Sector |
1. Raising of all types of foreign currency Loans;
2. Export proceeds realization of clients;
3. Issuance of Foreign Equity through ADRs / GDRs or other similar
instruments
4. Issuance of foreign currency Bonds;
5. Sale of securities and other financial instruments;
6. Other receivables not connected with services rendered by financial
institutions; and
II. earned through contract / regular employment abroad (e.g. labour
remittances);
3. Payments for services received from EEFC Account;
4. Foreign exchange turnover by Healthcare Institutions like equity participation,
donations etc. (However, remittances received on account of medical treatment, surgery, testing, consultancy and health care provided by the institution shall be eligible);
5. Foreign exchange turnover by Educational Institutions like equity participation, donations etc. (However remittances received on account of the course fees and consultancy provided by the institution shall be eligible);
6. Export turnover relating to services of units operating under SEZ / EOU / EHTP /
STPI / BTP Schemes or supplies of services made to such units;
7. Clubbing of turnover of services rendered by SEZ / EOU / EHTP / STPI / BTP units
with turnover of DT A Service Providers; and |
8. Export of Goods.
Service Providers (except Hotels, Restaurants and other Service Providers in Tourism Sector) are entitled to Duty Credit Scrip of 10% of foreign exchange earned during preceding financial year. Hotels of one-star and above (including managed hotels) and heritage hotels approved by Department of Tourism and other Service providers in tourism sector registered with Department of Tourism shall be entitled to 5% while Stand-alone restaurants are entitled for 10% of foreign exchange earned by them in preceding financial year.
"Duty Credit Scrip" may be used for import of any capital goods including spares, office equipment and professional equipment, office furniture and consumables, provided it is part of their main line of business. In the case of hotels and stand-alone restaurants, the duty credit entitlement may also be used for the import of food items and alcoholic beverages.The utilization is with AU Condition and Non-transferable except within a Group Company or Managed Hotel.
This benefit of Duty Credit Scrip is granted from Regional Offices of DGFT, spread all over the country. Duty Credit Scrip of nearly Rs.1000 Cr is granted annually, based on previous years Foreign Exchange earned by Service Providers.
Further, details of this Scheme may be seen in Chapter III of Foreign Trade Policy 2004-2007 and Chapter III of Hand Book of Procedure Vol. -I. These Documents are available at DGFT Website- www.dgft.gov.in |
INDIA’S FOREIGN TRADE: APRIL-SEPTEMBER, 2007. |
A. EXPORTS (including re-exports)
Exports during September, 2007 were valued at US $ 12796.61 million which was 19.26 % higher than the level of US $ 10730.34 million during September, 2006. In rupee terms, exports touched Rs. 51621.52 crore, which was 4.31% higher than the value of exports during September, 2006. Cumulative value of exports for the period April-September, 2007 was US$ 72280.60 million (Rs. 295233.05 Crore) as against US$ 60985.84 million (Rs. 280275.27 Crore) registering a growth of 18.52% in Dollar terms and 5.34% in Rupee terms during the same period last year.
B. IMPORTS
Imports during September, 2007 were valued at US $ 17217.65 million representing an increase of 2.31 % over the level of imports valued at US $ 16828.82 million in September, 2006. In Rupee terms, imports declined by 10.51%. Cumulative value of imports for the period April-September, 2007 was US$ 109204.43 million (Rs. 446420.86 Crore) as against US$ 87010.23 million (Rs. 399815.04 Crore) registering a growth of 25.51% in Dollar terms and 11.66% in Rupee terms during the same period last year.
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C. CRUDE OIL AND NON-OIL IMPORTS:
Oil imports during September, 2007 were valued at US $ 5497.96 million which was 7.98% higher than oil imports valued at US $ 5091.55 million in the corresponding period last year. Oil imports during April-September, 2007 were valued at US$ 31399.22 million which was 8.26% higher than the oil imports of US$ 29003.64 million in the corresponding period last year.
Non-oil imports during September, 2007 were estimated at US $ 11719.69 million which was 0.15% lower than growth of non oil imports of US$ 11737.27 million in September, 2006. Non-oil imports during April-September, 2007 were valued at US$ 77805.21 million which was 34.13% higher than the level of such imports valued at US$ 58006.59 million in April-September, 2006.
D. TRADE BALANCE
The trade deficit for April-September, 2007 was estimated at US $ 36923.83 million which was higher than the deficit at US $ 26024.39 million during April-September, 2006.
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INDIA'S FOREIGN TRADE -APR - SEP 2007(PROVISIONAL) |
EXPORTS & IMPORTS:
(US $ Million) |
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SEPTEMBER |
APR-SEP |
EXPORTS (including re-exports) |
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2006-2007 |
10730.34 |
60985.84 |
2007-2008* |
12796.61 |
72280.60 |
%Growth 2007-2008/ 2006-2007 |
19.26 |
18.52 |
IMPORTS |
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2006-2007 |
16828.82 |
87010.23 |
2007-2008* |
17217.65 |
109204.43 |
%Growth 2007-2008/ 2006-2007 |
2.31 |
25.51 |
TRADE BALANCE |
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2006-2007 |
-6098.48 |
-26024.39 |
2007-2008 |
-4421.04 |
-36923.83 |
EXPORTS & IMPORTS: (Rs. Crores) |
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SEPTEMBER |
APR-SEP |
EXPORTS (including re-exports) |
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2006-2007 |
49486.28 |
280275.27 |
2007-2008* |
51621.52 |
295233.05 |
%Growth 2007-2008/ 2006-2007 |
4.31 |
5.34 |
IMPORTS |
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2006-2007 |
77611.31 |
399815.04 |
2007-2008* |
69456.01 |
446420.86 |
%Growth 2007-2008/ 2006-2007 |
-10.51 |
11.66 |
TRADE BALANCE |
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2006-2007 |
-28125.03 |
-119539.77 |
2007-2008 |
-17834.49 |
-151187.81 |
| Figures for 2006-07 are the latest revised whereas figures for 2007-08 are provisional |
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APTA MINISTERIAL COUNCIL MEETING HELD |
The Second Ministerial Council of Asia-Pacific Trade Agreement (APTA) was held 26th October 2007. The Council was hosted by Shri Kamal Nath, Minister of Commerce & Industry. Over 30 delegates headed by the respective Ministers or Vice Ministers from the six APTA participating states (Bangladesh, China, India, the Republic of Korea, Lao PDR and Sri Lanka) attended the meeting. The most important task on the Ministers’ agenda was the launch of the Fourth Round of Tariff Negotiations which when completed will deepen and widen trading relations among the six participating states. Ministers also adopted the Agreement on Operational Rules for the Certification and Verification of the Origin of Goods, which is the first time that the economic powerhouses of China, India and Republic of Korea adopt a common set of operational rules. Together with membership expansion that is expected, to follow in the upcoming years, APTA is emerging as the only truly regional trade agreement that links east, southeast and south Asia, and is thus becoming an important platform for regional economic cooperation and integration.
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