The proposed India-Thailand free trade agreement (FTA) will have to wait for some more time to become operational, as there has been no headway in negotiations on the India-Asean treaty on free trading of goods.
Experts say this is a landmark deal that tackles a long-pending issue and will boost Russian investment in India's energy, minerals and defence sectors. The debt, accumulated over several years till April 15, 2007, is parked with the Reserve Bank of India. Explaining the agreement, Indian officials said a Russian company planning to invest in India would deposit rouble funds equivalent to their proposed investment with the Russian central bank.
Some new sectors in which the commerce ministry has proposed to allow foreign direct investment (FDI) are credit information companies and commodity exchanges. The ministry is in favour of allowing up to 49 per cent FDI proposed in both these sectors. In proposing to open up the commodity sector, the ministry has said that FII investment be limited to 24 per cent, with a condition that a foreign investor cannot hold more than 10 per cent equity in the investing companies
As foreign fund flows have lifted the rupee to record highs against the dollar, the commerce ministry has started telling exporters to prepare for the Indian currency rising further to 38 against the dollar by December. The strong rupee is already hurting India's exporters, with companies cutting jobs and scaling back expansions. A further appreciation may have even worse consequences for sectors like textile, infotech and automobile.
Analysts point out that exporters outside SEZs enjoy Cenvat credit against service tax paid on a host of services subscribed to while engaging in export-related activities. In addition, the department of revenue recently permitted service tax exemption on seven services used by exporters.
The Department of Commerce is preparing guidelines for setting up single-window clearance systems in states for special economic zones (SEZs). he move comes after a recent review by the department, in which it was found that the SEZ developers were facing problems in getting approvals in many states.
Since the SEZ Act was notified in February 2006, 22 SEZs have been up and running. In the last financial year (2006-07), these SEZs collectively exported goods worth Rs 33,000 crore (Rs 330 billion) , roughly 6 per cent of India's total exports of Rs 5,71,641 crore (Rs 5716.41 billion). Officials also pointed out that 52,000 people have found employment in the new SEZs set up after 2005.
The finance ministry had strongly opposed the hike announced by the commerce ministry.
Even as India and China give final touches to a joint study group report on enhancing trade ties, the domestic industry, especially the electronics sector, is facing an unprecedented threat from Chinese imports.
India and Australia are soon likely to initiate talks for a free trade agreement.
The highlights of the export package was the increase of drawback rates by an average 2 percentage to 3 percentage points with retrospective effect from April 1.
Even as the SEZ Board of Approval meeting, held in New Delhi on Thursday, deferred taking a decision on Essar's request to link its steel-based zone at Hazira
There was a time when the footwear exporters of Agra used to rue the fact that their export market was predominantly Europe where they could tot up only modest gains.
FIPB split over Bates' Sercon stake buy. Ravi Shastri's firm alleges violation of Press Note 1.
The commerce ministry had, in March, put on hold this change in the SEZ rules.
In a move that is likely to boost border trade between India and China, the commerce ministry is considering to expand the number of items traded through Nathu La in Sikkim.
Developers will soon be allowed to transfer used plant and machinery of up to 20 per cent of their total capital goods requirement to special economic zones they set up.
The European Union may back off from its insistence on including non-trade issues like human rights in the proposed free trade pact with India.
Anand Khushwaha, a small Delhi-based exporter of imitation jewellry, has been inundated by e-mails from his customers in the United States and Europe.
Environmental and social activist groups in the country have expressed concern that Japan may dump toxic wastes into India by taking advantage of the proposed comprehensive economic partnership agreement.
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