India on Wednesday asked its South Asian neighbours to increase intra-regional trade as a cushion against slowdown in exports to the US and European markets.
Dubbing Pakistan's decision to ban onion exports across the Wagah border as "shocking", India on Thursday said the issue has been taken up with the concerned authorities in Islamabad.
India has assured global investors of a stable policy regime, stating no government initiative has ever been reversed or questioned in the past two decades.
Commerce and Industry Minister Anand Sharma will meet new US Trade Representative Ron Kirk at Bali in Indonesia on June 6-7, on the sidelines of the meeting of the Cairns Group of farm product-exporting countries. The two countries have serious differences on the level of protection that can be given to farmers as and when the global market for farm products is opened up. India has argued all along that it cannot compromise on food security and livelihood concerns.
Anand Sharma, who took charge of the nodal ministry for FDI on May 29, said there is no need for a relook at the policy amended in February by the Department of Industrial Policy and Promotion. While the policy does not allow overseas inflow into this sector, the changes in February were perceived to be opening the sector to FDI up to 49 per cent in an Indian firm that has a downstream subsidiary firm in retailing.
The India-China trade is on course to reach the USD 100 billion target by 2015, but New Delhi is concerned over galloping gaps between India's exports and imports from China.
The recession hit US today said it wants to enhance dialogue with India on key trade policy issues, including the bilateral investment treaty under negotiation.
India and US have agreed to redouble their efforts to iron out the key trade and economic differences between both the countries before the visit of President Barack Obama to New Delhi in early November.
Faced with slump in demand in key markets such as the US and Europe, India's exports plunged by 30 per cent in May as per the quick estimates, given by commerce secretary G K Pillai. The final figures will be released on July 1. Exports fell the most in 14 years by 33.2 per cent in April to $10.74 billion in April 2009-10, from $16.08 billion a year ago.
India was fourth in 2008, in terms of FDI inflows, among developing countries, he said referring to UNCTAD World Investment Report (WIR) 2009.
The government on Wednesday expressed disappointment over China not fulfilling its promise to import more IT, ITeS and pharma products, which could help reduce the hugely-tilted trade imbalance favouring Beijing.
A senior European Union representative said here on Tuesday that the body would soon change its Customs laws to address the issue of seizures of Indian generic drug shipments while en route for export to other countries.
The government on Tuesday indicated that it was open to changing FDI norms for multi-brand retail sector, saying policies 'are not cast in stone'.
According to the Press Notes 2, 3 and 4 of the department of industrial policy and promotion, for a company or entity to be treated as Indian, foreign investment, including American and global depository receipts, foreign currency convertible bonds, convertible preference shares and from non-resident Indians, in it should be less than 50 per cent.
At present, a maximum of 26 per cent is allowed in the defence sector.
After the heat it faced on climate change stand for the Copenhagen summit, the government on Tuesday came under scanner as the Opposition felt that India might come under US pressure on the trade talks in WTO.
"In the next five years, we are aiming to have $ 250 billion FDI coming into India," Commerce and Industry Minister Anand Sharma said at a CII function in New Delhi.
The government's disinvestment programme made a muted re-start with the Cabinet Committee on Economic Affairs approving the part-sale of its stake in two power companies -- NTPC and Satluj Jal Vidyut Nigam -- but postponing a decision on the overall disinvestment policy.
Data on primary and fuel items would continue to be released on weekly basis.
Earlier this week, commerce secretary Rahul Khullar met EU director-general for trade David O'Sullivan to review the progress so far. Several differences mired the process over EU's insistence on including social issues such as human rights, labour policies and climate change within the FTA purview.
India will make yet another effort at the ministerial level to give a push to Doha Round of WTO trade talks before leaders of the G-20 meet in Seoul next month.
Commerce and industry minister Anand Sharma warned against protectionist measures resorted to by developed countries saying those measures would further deepen recession and delay a recovery in the world economy.
India is negotiating for a comprehensive economic partnership agreement with Malaysia and Japan and a broad based trade and investment agreement with the EU.
Helped by an impressive 46.4 per cent rise in June, exports grew by a hefty 45.7 per cent in the first quarter of the current fiscal despite uncertainties in the US and European markets.
Currently, trade between India and Africa stands at about $45 billion.
The agreement that provides for both India and ASEAN reducing tariff on agreed goods has come into force with all but Cambodia and Philippines.
The country would also ink the free trade pact with Malaysia in the same week.
A policy change on full convertibility of rupee is not possible at present, commerce and industry minister Anand Sharma said in New Delhi. Even finance minister Pranab Mukherjee said on Wednesday that 'we welcome the deal but it should in the context of existing laws of the land'.
Commerce and Industry Minister Anand Sharma said he expected exports to reach $200 billion in the financial year ending March 2011.
The country is on track to surpass the export target of $200 billion for the current fiscal, Commerce and Industry Minister Anand Sharma said in New Delhi on Monday.
Commerce Minister Anand Sharma on Wednesday sought to assure prospective American investors that India is a 'welcoming investment' destination where the climate is 'totally conducive' to such actions.
In a strongly worded letter to Finance Minister Arun Jaitley, Congress' Jairam Ramesh accused him of distorting facts.
Commerce Minister Anand Sharma has a tough time in Davos pacifying African leaders, who are extremely upset over Delhi law minister's midnight raid. Anita Katyal reports
Currently, 100 per cent FDI is permitted in brownfield pharma firms through clearance from the Foreign Investment Promotion Board.
Scott Price is learnt to have conveyed to Sharma that Walmart remained committed to the India market.
Defence Minister A K Antony has shot down Commerce Ministry's proposal to raise Foreign Direct Investment in defence from 26 per cent to 49 per cent, saying it will be a "retrograde" step and "stymie" the growth of the domestic industry while increasing dependence on foreign manufacturers.
Indonesian Trade Minister Gita Wirjawan, Chair of the Ninth Ministerial Conference, and the three Vice Chairs, in a joint statement, urged 'all WTO members to come together over the next few days to make the necessary breakthroughs, working closely with WTO Director General Roberto Azevedo.'
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India-European Union Broad-based Trade and Investment agreement came up for discussion in a meeting between Sharma and visiting Netherlands Minister of Foreign Trade and Development Cooperation Lilianne Ploumen in New Delhi.
Rajya Sabha was adjourned twice during Question Hour on Monday as the Congress created uproar saying there were inconsistencies in government statements on the World Trade Organisation though Finance Minister Arun Jaitley asserted there was no contradiction.
A letter reversing the decision was sent by Rajasthan Chief Minister Vasundhara Raje to Commerce and Industry Minister Anand Sharma.
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