| The Union Minister of Commerce, Industry and Textiles, Shri Anand Sharma informed here today that India’s bilateral trade with Malaysia stood at nearly USD 13 billion last year registering a growth of 34% over the previous year. Addressing the members of India-Malaysia CEO Forum, Shri Sharma said, “while we had set a trade target of US$ 15 billion by 2015, I am confident that we will be able to achieve this target definitely by 2013 if not this year. I will be proposing to my counterpart Minister Mustapa Mohamed that we revise this target upwards.” Recalling his visits to Malaysia in July 2010 and February 2011, Shri Sharma said that he had sought investment from Khazanah Nasional Berhad (Government of Malaysia's strategic investment fund) into Indian infrastructure sector through a collaborative venture with IDFC. Shri Sharma informed that a SPV has been created between Khazanah and a subsidiary of IDFC with an equity base of Rs. 830 crores for financing the national highway construction projects. The Minister said that during his visits, he identified priority sectors of engagement including Roads & highways, Railways, Airports, IT &ITES, Biotechnology, Tourism, Health Services and JV projects in third countries.Subsequently, the two countries have entered into a Comprehensive Economic Cooperation Agreement which was signed in February 2011. The signing of this Agreement has provided considerable momentum to trade and investment on both sides. Members and the Minister also expressed happiness on the robust investment front. Malaysian investment in India stands at US$ 7.8 billion while Indian investments in Malaysia are in the range of USD 3 billion. Indian investments in Malaysia are growing steadily. At present, there are more than 100 Indian companies including 61 Indian joint ventures operating in Malaysia. In the past three years alone, about USD 2 billion have been invested by our companies making it the 7th largest investor in Malaysia. The India Malaysia CEO forum is co-chaired by Shri Malvinder Mohan Singh from India and Mr Tan Sri Krishnan Tan Boon Seng from Malaysia. DS (Release ID :87990) |
Wednesday 26 September 2012
India Malaysia to Achieve Trade Target of USD 15 Billion by 2013 Anand Sharma to Propose Upward Revision of the Target IDFC and Malaysian Soverign Fund Form SPV with Rs. 830 Crore Equity Base for Highway Projects
Sunday 23 September 2012
Dr. Manmohan Singh to inaugurate the International Academic Conference being organized by the Indian Law Institute
The Institute also organizing Seminar on 50 Years of the Indian Advocates Act, 1961 and its Relevancy in the International Context |
The Indian Law Institute (ILI) in collaboration with Asia Legal Information Network (ALIN) & Korea Legislation Research Institute (KLRI) is organising the ALIN International Academic Conference-2012 on the topicEconomic Growth and changes of Corporate Environment in Asia here tomorrow at Vigyan Bhawan. The conference will be inaugurated by Dr. Manmohan Singh, Prime Minister of India. Shri Justice S.H. Kapadia, Chief Justice of India and the President, ILI will preside over the function. Shri Justice Altamas Kabir, Chief Justice of India Designate, Shri Justice Swatanter Kumar, Judge, Supreme Court of India, Shri G.E. Vahanvati, Attorney General for India, Dr. Yoohwam Kim, President, KLRI and Prof. (Dr.) S. Sivakumar, Director Incharge, ILI will be present on the dais. The inaugural session will be followed by the technical session on the theme Globalisationvis a vis Economic Growth: Asian Perspective and thereafter the concluding session on the theme Corporate Stability and Economic Growth. The conference will be attended by delegates from 16 countries.
On 23rd September, 2012, the Indian Law Institute in association with Bar Council of India, Supreme Court Bar Association, Bar Council of Delhi, Delhi High Court Bar Association and Supreme Court Advocate on Record Association will be organising a Seminar on “ Working of Fifty years of the Indian Advocates Act and its Relevancy in the International Context”. The event will be inaugurated by the Lok Sabha Speaker Smt. MeiraKumar. The inaugural session will be followed by the technical session which will have such legal luminaries asShri R.F. Nairman, Shri K. Parasaran, Shri P.P. Rao and Prof. N.R. Madhava Menon as key speakers.
------------------------
KKP/sl
|
Joint Statement of the 7th Round of talks on Commercial and Economic Co-Operation between Commerce Secretaries of India and Pakistan
Joint Statement of the 7th Round of talks on Commercial and Economic Co-Operation between Commerce Secretaries of India and PakistanThe 7th round of India-Pakistan talks on Commercial and Economic Co-operation was held during 20-21 September 2012 at Islamabad between the Commerce Secretaries of India and Pakistan.
2. The Indian delegation was led by Mr. S R Rao, Commerce Secretary and Pakistan’s was led by Mr. Munir Qureshi, Secretary, Commerce.
3. Both sides expressed satisfaction with the progress made in the bilateral trade relationship, since last round of talks in New Delhi (14-16 November 2011). The bilateral meetings and discussions of the Trade and Commerce Ministers of both countries (September-2011, February-2012 and April-2012) provided a strong political impetus to enhanced economic engagement. The transition towards full normalization of trade relations with India was initiated by moving from a ‘positive list’ regime to a ‘negative list’ regime. Following the visit of Commerce Minister Shri Anand Sharma to Pakistan in February 2012, Pakistan side notified its negative list on 20th March 2012. The understanding at the previous Ministerial level talks has been that after approval by the Cabinet this negative list would be dismantled before the end of 2012.
4. The Commerce Secretaries reviewed with satisfaction that Commerce Ministers of India and Pakistan as well as the Chief Ministers of Punjab on either side of the border had jointly participated (April, 2012) in the Inauguration Ceremony of the new Integrated Check Post (ICP) at Attari. Commerce Secretaries appreciated that better trading opportunities provided through land route would enhance mutual prosperity of the business communities and consumers of both sides of the border. They however, noted that there is need to further strengthen infrastructure on both sides. They directed the customs and the port authorities to resolve all the issues through mutual cooperation, harmonization of customs procedures, provision of laboratory facilities, scanners, weigh bridges, cold houses, containerized services and automation of the business processes. For this purpose, meetings of the Customs Liason Border Committee would be held on monthly basis. CLBC would also explore the possibilities of organizing meetings between the relevant importers and exporters at Wagah-Attari border. It was decided that this Land Customs Station would operate seven days a week.
5. The need for more trade traffic to be carried through the Railways was emphasized. For this purpose, it was agreed that the Railway Ministries would hold joint coordination meetings on a monthly basis, at the appropriate levels. Issues on availability of sufficient number of rakes for interchange was also highlighted by the Pakistan Railways. It was noted that the earlier agreed provision of 3-4 interchanges a day has not been adhered to due to current trade patterns. A viable solution is to allow High Capacity Wagons (HCW) from Pakistan which carry three times more load than the regular wagons. The Indian Railways agreed that specifications already provided by the Pakistan Railways for HCW would be examined and conveyed accordingly within two months.
6. On exploring the possibilities of opening new land routes for trade, Pakistan side informed that a working group on Munabhao-Khokhrapar has been constituted. Indian side has already conveyed constitution of working group. It was agreed that meeting of the JWG on Munabhao-Khokhrapar would be held in 4th week of October, 2012 at New Delhi.
7. Both sides appreciated the recent signing (September, 2012) of the new liberalized bilateral visa regime. This fulfils a long pending demand of the business communities of both sides to ensure a better enabling environment for bilateral trade.
8. Pakistan side also appreciated the recent measures which have been taken by India to remove its earlier restrictions on inbound and outbound investments to Pakistan. Pakistan side sought clarifications from Indian authorities on investment through “Government Route” and its implications for investment by Pakistani investors in India. Both sides agreed to encourage two way investment and to enhance investor confidence on both sides, the procedures need to be simplified. It was also decided that outreach programmes may be held with the business communities on both sides, regarding the new investment opportunities, application procedures and regulatory issues.
9. On the issues relating to removal of Non-Tariff Barriers, Secretary Commerce Pakistan highlighted that certifications/ licensing/ lab testing/ are not the only NTBs but issues like delays in customs clearance, non availability of railway wagons for cargo transport, absence of direct flights or any problem which delays the clearance of goods with no end results or change, faced by importer/exporter is an NTB. He reiterated that concrete solutions of all such issues are crucial for ensuring market access in the Indian markets for Pakistani exporters. Commerce Secretary India while noting the views expressed by Commerce Secretary Pakistan, emphasized the need for elimination of such NTBs on both sides. Both sides expressed satisfaction on signing of the three agreements i.e. Redressal of trade grievances agreement, Mutual Recognition Agreement and Customs Cooperation Agreement and directed the relevant authorities to frame rules and procedures to fully implement these agreements. These agreements are expected to substantially facilitate bilateral trade mechanisms. It was agreed that on the same pattern as Mutual Recognition Agreement between BIS and PSQCA, another agreement between Export Inspection Council of India (EIC) and PSQCA will be signed. Both sides have already exchanged the draft texts and it was agreed to complete the internal approvals before the next meeting of the Commerce Secretaries.
10. The JWG on Customs Matters has held one meeting in August 2011. In order to frame rules and procedures to implement the two agreements signed between the Customs Authorities, it was agreed that JWG on Customs would meet in the following month either at Karachi or Mumbai.
11. It was reiterated that the road map drawn in the earlier Ministerial meetings, for liberalized and preferential trade regimes would be scrupulously adhered to. Pakistan side informed that summary for removal of restrictions on trade through land route has been moved to the Cabinet and assured that decision to this effect is expected to be notified before end of October, 2012.
12. The Pakistan side expressed appreciation of the steps taken by India to reduce its SAFTA sensitive list by 30% from 878 tariff lines to 614 tariff lines as agreed earlier during the 6th Round of Talks. The Indian side explained that out of 264 tariff lines which have been removed from India’s SAFTA sensitive list, 155 tariff lines pertain to agricultural commodities and 106 tariff lines relate to textile items. To further deepen the preferential arrangements under SAFTA and to provide level playing field to Pakistani exporters in comparison to concessions allowed by India under SAFTA to rest of the countries in the SAARC region, both sides developed a long term plan. It was noted that Pakistan now has a total of 936 tariff lines at 6 digit under its SAFTA Sensitive List, as against 614 tariff lines at 6 digit of India. It was agreed that after Pakistan has notified its removal of all restrictions on trade by Wagah-Attari land route, the Indian side would bring down its SAFTA sensitive list by 30% before December, 2012 keeping in view Pakistan’s export interests . Pakistan would transition fully to MFN (non discriminatory) status for India by December 2012 as agreed earlier. India would thereafter bring down its SAFTA Sensitive List to 100 tariff lines at 6 digit level by April, 2013. As India notifies the reduced Sensitive List, Pakistan, after seeking approval of the Cabinet, will also simultaneously notify its dates of transition to bring down its SAFTA sensitive list to a maximum of 100 tariff lines at 6 digit level within next 5 years. The reductions shall be notified by Pakistan in equal measure for each year so as to complete reduction to 100 lines before end of 2017. Thus, before the end of 2017, both India and Pakistan would have no more than 100 (6 digit) tariff lines in their respective SAFTA sensitive lists. Before the end of year 2020, except for this small number of tariff lines under respective SAFTA sensitive lists, the peak tariff rate for all other tariff lines would not be more than 5%.
13. The Commerce Secretaries also reviewed the progress on other issues such as enhanced trade for petroleum products, trade in power and reciprocal opening of Bank branches. Based on this review, the Commerce Secretaries exhorted the relevant stakeholders on both sides to speed up the mutual consultations so that concrete progress is achieved within the next six months. During this review, Indian side informed its willingness to consider export of gas up to 5 million cubic metres per day, for an initial period of five years. Pakistan side informed that India’s offer has been received and is under active consideration. BHEL (an Indian PSU) made an offer to cooperate with the Pakistan side in setting up 500 – 2000 MW capacity in coal/hydro or Gas power plants, as per their requirements. Indian side indicated its willingness to cooperate with Pakistan in areas of wind and solar energy. Indian side also made an offer for meeting the requirements of Pakistan Railways for up to 100 locomotives.
14. Pakistan side emphasized the importance of taking SMEs along in this trade normalization process. It highlighted that sectors like surgical instruments, cutlery, fans, leather and marble products have a huge potential for trade. It was agreed that an institutional mechanism would be constituted to work out exhibitions of these products in India. Sharing of technology, skill development, training and collaboration in development of designs would also be encouraged. Cooperation in the manufacturing activities of the Gems and Jewellery sector would be actively encouraged.
15. As a part of this round of talks, representatives of the Civil Aviation Authorities of both the countries undertook discussions to ensure better air connectivity between New Delhi and Islamabad. It was noted that against an average of about 23 flights per week between New Delhi and other important national capitals of the SAARC countries, there is as yet no direct air connectivity between New Delhi and Islamabad. It was agreed that a Joint Working Group (JWG) would be formed before 15th November 2012, which would work out a more liberalized regime of reciprocal bilateral rights for commercial flights, to ensure economic viability of this air route. This JWG would also explore mechanisms for more efficient courier services.
16. The two sides noted with satisfaction the business-to-business contact which is steadily growing between both countries. Chambers of Commerce on either side have been supporting business delegations and trade issues in each other’s countries. This process would be supported and facilitated by the Commerce Ministries of both the countries, with the active support of the TDAP and ITPO. The Secretaries directed the two organizations to provide better guidance to chambers and business people on customs procedures, import regulations and how to organize exhibitions.
17. The Commerce Secretaries also noted the decision that was taken by the Commerce Ministers to form a Joint Business Council (JBC) as an additional institutional framework for regular and sustained dialogue between the business communities. Both sides agreed to exchange names of 10 prominent business persons from each country for this JBC within a month. The endeavour would be to have a first meeting of this JBC before December 2012 and its recommendations would be duly considered for taking forward the ongoing trade and investment dialogue. The JBC would, inter-alia, also explore measures for increasing other related activities between the people of both countries.
18. Preliminary discussions were also held on possibilities of better telecommunication linkages keeping in view the requirements of business communities on both sides for international roaming facilities. It was agreed that separate sub-groups on either side would take forward this dialogue. Commerce Secretaries would review thereafter.
19. Both sides also reviewed the earlier discussed possibilities of greater trade cooperation in sectors of agriculture and information technology. Relevant stake-holders would be encouraged to take forward economic cooperation in these areas. Cooperation for increasing cotton yield in Pakistan through trials of suitable Bt cotton seeds, would be given more focused attention
20. The Commerce Secretaries of both countries placed on record appreciation of their predecessors Dr. Rahul Khullar and Mr. Zafar Mahmood, who had very ably steered the trade dialogue from April 2011 onwards. It was resolved to further build upon the foundations laid by them to consolidate and enhance economic engagement.
21. The 8th round of talks would be scheduled to take place in India in April 2013. In the meantime co chairs of the JWG on economic and commercial cooperation, Joint Secretaries of Commerce, India and Pakistan would meet in December, 2012 at Islamabad.
22. The bilateral trade talks were conducted in a very cordial and positive atmosphere.
DS/GK
(Release ID :87891)
Finance Minister approves the Operational Features of the Rajiv Gandhi Equity Savings Scheme (RGESS)
| The Union Finance Minister Shri P. Chidambaram approved a new tax saving scheme called “Rajiv Gandhi Equity Saving Scheme“(RGESS),exclusively for the first time retail investors in Securities Market. This Scheme would give tax benefits to new investors who invest up to Rs. 50,000 and whose annual income is below Rs. 10 lakh. The Scheme not only encourages the flow of savings and improves the depth of domestic capital markets, but also aims to promote an ‘equity culture’ in India. This is also expected to widen the retail investor base in the Indian securities markets. Salient features of the Scheme are as under: a. Scheme is open to new retail investors, identified on the basis of their PAN numbers. This includes those who have opened the Demat Account but have not made any transaction in equity and /or in derivatives till the date of notification of this Scheme and all those account holders other than the first account holder who wish to open a fresh account. b. Those investors whose annual taxable income is ≤ Rs. 10 lakhs are eligible under the Scheme. c. The maximum Investment permissible under the Scheme is Rs. 50,000 and the investor would get a 50% deduction of the amount invested from the taxable income for that year. d. Under the Scheme, those stocks listed under the BSE 100 or CNX 100, or those of public sector undertakings which are Navratnas, Maharatnas and Miniratnas would be eligible. Follow-on Public Offers (FPOs) of the above companies would also be eligible under the Scheme. IPOs of PSUs, which are getting listed in the relevant financial year and whose annual turnover is not less than Rs. 4000 Crore for each of the immediate past three years, would also be eligible. e. In addition, considering the requests from various stakeholders, Exchange Traded Funds (ETFs) and Mutual Funds (MFs) that have RGESS eligible securities as their underlying and are listed and traded in the stock exchanges and settled through a depository mechanism have also been brought under RGESS. f. To benefit the small investors, the investments are allowed to be made in instalments in the year in which tax claims are made. g. The total lock-in period for investments under the Scheme would be three years including an initial blanket lock-in period of one year, commencing from the date of last purchase of securities under RGESS. h. After the first year, investors would be allowed to trade in the securities in furtherance of the goal of promoting an equity culture and as a provision to protect them from adverse market movements or stock specific risks as well as to give them avenues to realize profits. i. Investors would, however, be required to maintain their level of investment during these two years at the amount for which they have claimed income tax benefit or at the value of the portfolio before initiating a sale transaction, whichever is less, for at least 270 days in a year. The calculation of 270 days includes those days pursuant to the day on which the market value of the residual shares /units has automatically touched the stipulated value after the date of debit. j. The general principle under which trading is allowed is that whatever is the value of stocks / units sold by the investor from the RGESS portfolio, RGESS compliant securities of at least the same value are credited back into the account subsequently. However, the investor is allowed to take benefits of the appreciation of his RGESS portfolio, provided its value, as on the previous day of trading, remains above the investment for which they have claimed income tax benefit. k. For the purpose of valuation of shares, the closing price as on the previous day of the date of trading will be considered so that new investors are certain about their debits and credits into the account. l. In case the investor fails to meet the conditions stipulated, the tax benefit will be withdrawn. Like all financial products which have reached out substantially to the retail investors (post office savings, life insurance policies etc) through tax benefits, this tax break for direct investment in equity is expected to substantially encourage the retail participation in securities market as well as to enhance their participation in the growth of Indian industry. Entry of more retail investors are expected to further deepen the securities markets as they bring in long-term stable funds, which can counteract the volatility created by the liquidity providers of the market. The Scheme, thus, also furthers the goal of financial stability and promotes financial inclusion. Since Exchange Traded Funds and Mutual Funds have also been brought under the Scheme, the Scheme should provide encouragement and re-assurance to the first time investors. The broad provisions of the Scheme and the income tax benefits under it have already been incorporated as a new Section - 80CCG - of the Income Tax Act, 1961, as amended by the Finance Act, 2012. Department of Revenue will notify the Scheme and SEBI will issue the relevant circulars to operationalize the Scheme in the next two weeks. DSM/RS/Hb (Release ID :87893) |
Civil Aviation Minister Shri Ajit Singh says Air Connectivity to Remote areas is high on his Priorities
| Union Minister of Civil Aviation Shri Ajit Singh has said that providing affordable air connectivity to remote and interior areas of the country, the North Eastern Region and Tier-II & III cities of India is high on his priorities. For this new and innovative solution in the form of Route Dispersal Guidelines, aircraft acquisition and development of low cost airports will be put in place. He was addressing the 5th ASSOCHAM International Conference on Indian Civil Aviation in New Delhi today. The Minister outlined a number of important action points needed to develop civil aviation sector in India. The agenda that he narrated in the Conference to develop the sector included getting ATF declared as notified product to bring transparency in its pricing and reduction of VAT on ATF by the States; creation of Civil Aviation Authority to manage the phenomenal growth of air traffic with safety; development of world class ANS infrastructure to manage the coming growth phase safely and efficiently; development of low cost airports to keep the tariff at its minimal at smaller airports which in turn would help in making air travel affordable; restructuring of Airports Authority of India into ANS & Civil Wing to make it more effective, efficient and professional body; creation of a separate Civil Aviation Security Force which is professionally trained and exclusively meant for the work of civil aviation and skill augmentation in civil aviation sector through a vibrant, world class aviation education and training. Shri Singh expressed concern over the financial health of airline carriers in India despite the high growth rate of passengers. Stating that the approximate losses of airlines in the last financial year 2011-12 have been over Rs. 10,000 crores, the Minister said that one of the major challenges of the air traffic industry in India is the high and growing debt burden of the carriers. He said nearly half of the debt is aircraft related and the rest is accounted for by working capital loans, dues to airport operators and fuel companies. Shri Singh said that while there are number of structural factors that are responsible for this phenomenon, the operating cost environment is adversely impacting the financials of the airline sector. Shri Singh emphasised the need to develop India as an international hub for the passengers. He said that action in this regard has been initiated, which includes revisiting the policy regarding bilateral air service agreements with different countries and also rationalisation of all bilaterals and traffic entitlements on international routes to Indian carriers and rationalisation of traffic on domestic routes. The Minister outlined the major actions taken in the last nine months in this direction which included allowing 49% FDI by foreign airlines in Indian carriers, allowing Indian carriers to import ATF, allocation of traffic rights to domestic private carriers to fly on International routes and creation of separate Air Accident Bureau for effective analysis of causes and taking corrective measures. Shri Singh also touched upon the steps taken to bring turnaround of Air India including equity infusion, conversion of short term loans to long term loans and issue of Government guaranteed NCDs to raise funds. The Minister said India needs to make lot of efforts and significant investments in the field of development of airport infrastructure (construction of new airports, expansion and modernization of existing airports), improvement in connecting infrastructure (road, metro, sea, link etc.) and better air space management. He called upon the industry to come forward with innovative & implementable ideas for the development of civil aviation sector in India. MA/VN (Release ID :87904) |
ECI holds First Consultation with Civil Society Organisations on Inclusive Voting and Electoral Participation
| The Election Commission of India today started a two-day consultation with Civil Society Organizations on‘Inclusive Voting and Electoral Participation’ in New Delhi. This is first formal consultation by the ECI at the national level with civil society groups from across the country. In his key note address at the consultation, Shri V S Sampath, Chief Election Commissioner called for active support of civil society organizations for higher registration and higher voter turnout. He said ECI’s goal is to build wider social support in favour of participatory democracy and to promote and sustain it through election education and voter participation. Shri H S Brahma, Election Commissioner said that civil society organisations should sensitise people about the issues to help them make informed choices during elections. Shri Brahma said CSOs could be of great value in spreading the ECI’s message of informed and ethical voting. Ms Caitlin Wiesen, Country Director, UNDP India, commended ECI’s initiative to partner with CSOs in promoting inclusive Voter participation and said ‘It would stregthen participatory democratic governance.’ Shri Nasim Zaidi, Election Commissioner and senior officials of ECI and UNDP also attended the function. Shri Akshay Rout, Director General of the Commission highlighted the record participation of voters achieved during the assembly elections earlier this year through comprehensive outreach measures. Later, civil society organizations held intense consultation on various aspects of inclusion and participation. The consultation is being organised by the Systematic Voters Education and Electoral Participation (SVEEP) Division of ECI in association with UNDP. Around 40 Civil Society Organisations from across the country working in the field of Voter Education, Women empowerment, inclusion and other related fields are participating in this national consultation. The consultation aims at coming up with recommendations on six important issues in elections viz meeting gender gap, fighting urban apathy, overcoming youth disconnect, inclusion of marginalised and weaker section, ethical voting-beyond intimidation and inducements, and electoral services support by NGOs. The consultation also aim at preparing a framework for Commission and civil society organizations to work together. Election Commission of India New Delhi, 21 September, 2012 |
Prime Minister's Address to the Nation
Prime Minister, Dr. Manmohan Singh addressed the nation today. Following is the text of the Prime Minister’s address:
“My dear brothers and sisters,
I am speaking to you tonight to explain the reasons for some important economic policy decisions the government has recently taken. Some political parties have opposed them. You have a right to know the truth about why we have taken these decisions.
No government likes to impose burdens on the common man. Our Government has been voted to office twice to protect the interests of the aam admi.
At the same time, it is the responsibility of the government to defend the national interest, and protect the long term future of our people. This means that we must ensure that the economy grows rapidly, and that this generates enough productive jobs for the youth of our country. Rapid growth is also necessary to raise the revenues we need to finance our programmes in education, health care, housing and rural employment.
The challenge is that we have to do this at a time when the world economy is experiencing great difficulty. The
We too have been affected, though I believe we have been able to limit the effect of the global crisis.
We are at a point where we can reverse the slowdown in our growth. We need a revival in investor confidence domestically and globally. The decisions we have taken recently are necessary for this purpose.
Let me begin with the rise in diesel prices and the cap on LPG cylinders.
We import almost 80% of our oil, and oil prices in the world market have increased sharply in the past four years. We did not pass on most of this price rise to you, so that we could protect you from hardship to the maximum extent possible.
As a result, the subsidy on petroleum products has grown enormously. It was Rs. 1 lakh 40 thousand crores last year. If we had not acted, it would have been over Rs. 200,000 crores this year.
Where would the money for this have come from? Money does not grow on trees. If we had not acted, it would have meant a higher fiscal deficit, that is, an unsustainable increase in government expenditure vis-a-vis government income. If unchecked, this would lead to a further steep rise in prices and a loss of confidence in our economy. The prices of essential commodities would rise faster. Both domestic as well as foreign investors would be reluctant to invest in our economy. Interest rates would rise. Our companies would not be able to borrow abroad. Unemployment would increase.
The last time we faced this problem was in 1991. Nobody was willing to lend us even small amounts of money then. We came out of that crisis by taking strong, resolute steps. You can see the positive results of those steps. We are not in that situation today, but we must act before people lose confidence in our economy.
I know what happened in 1991 and I would be failing in my duty as Prime Minister of this great country if I did not take strong preventive action.
The world is not kind to those who do not tackle their own problems. Many European countries are in this position today. They cannot pay their bills and are looking to others for help. They are having to cut wages or pensions to satisfy potential lenders.
I am determined to see that
We raised the price of diesel by just Rs. 5 per litre instead of the Rs 17 that was needed to cut all losses on diesel. Much of diesel is used by big cars and SUVs owned by the rich and by factories and businesses. Should government run large fiscal deficits to subsidise them?
We reduced taxes on petrol by Rs. 5 per litre to prevent a rise in petrol prices. We did this so that the crores of middle class people who drive scooters and motorcycles are not hit further.
On LPG, we put a cap of 6 subsidised cylinders per year. Almost half of our people, who need our help the most, actually use only 6 cylinders or less. We have ensured they are not affected. Others will still get 6 subsidised cylinders, but they must pay a higher price for more.
We did not touch the price of kerosene which is consumed by the poor.
My Dear Brothers and Sisters,
You should know that even after the price increase, the prices of diesel and LPG in
The total subsidy on petroleum products will still be Rs. 160 thousand crores. This is more than what we spend on Health and Education together. We held back from raising prices further because I hoped that oil prices would decline.
Let me now turn to the decision to allow foreign investment in retail trade. Some think it will hurt small traders. This is not true.
Organised, modern retailing is already present in our country and is growing. All our major cities have large retail chains. Our national capital,
In a growing economy, there is enough space for big and small to grow. The fear that small retailers will be wiped out is completely baseless.
We should also remember that the opening of organised retail to foreign investment will benefit our farmers. According to the regulations we have introduced, those who bring FDI have to invest 50% of their money in building new warehouses, cold-storages, and modern transport systems. This will help to ensure that a third of our fruits and vegetables, which at present are wasted because of storage and transit losses, actually reach the consumer. Wastage will go down; prices paid to farmers will go up; and prices paid by consumers will go down.
The growth of organised retail trade will also create millions of good quality new jobs.
We recognise that some political parties are opposed to this step. That is why State governments have been allowed to decide whether foreign investment in retail can come into their state. But one state should not stop another state from seeking a better life for its farmers, for its youth and for its consumers.
In 1991, when we opened
My Dear Brothers and Sisters,
The UPA Government is the government of the aam aadmi.
In the past 8 years our economy has grown at a record annual rate of 8.2 per cent. We have ensured that poverty has declined much faster, agriculture has grown faster, and rural consumption per person has also grown faster.
We need to do more, and we will do more. But to achieve inclusiveness we need more growth. And we must avoid high fiscal deficits which cause a loss of confidence in our economy.
I promise you that I will do what everything necessary to put our country back on the path of high and inclusive growth. But I need your support. Please do not be misled by those who want to confuse you by spreading fear and false information. The same tactics were adopted in 1991. They did not succeed then. They will not succeed now. I have full faith in the wisdom of the people of
We have much to do to protect the interests of our nation, and we must do it now. At times, we need to say "No" to the easy option and say "Yes" to the more difficult one. This happens to be one such occasion. The time has come for hard decisions. For this I need your trust, your understanding, and your cooperation.
As Prime Minister of this great country, I ask each one of you to strengthen my hands so that we can take our country forward and build a better and more prosperous future for ourselves and for the generations to come.
Jai Hind.”
SH/SKS/SS
(Release ID :87912) |
India - Japan Friendly relations
The Government of the Republic India (hereinafter referred to as “GOI”), and the Government of Japan (hereinafter referred to as “GOJ”)
Considering the desire of both countries to strengthen their friendly relations;
Desirous of facilitating the contacts between nationals of both countries;
Have mutually confirmed their intentions to take or maintain the following measures to simplify their respective visa procedures subject to the laws and regulations of their respective countries.
1. Measures related to Business Visas in India and Temporary Visitor’s Visas for Businessmen in Japan
(a) Each side may issue multiple entry visas valid for up to 5 years to each other’s businessmen who travel to the other country on a temporary visit for business purposes on receipt of a letter of request from a duly recognized company or employer of each country or on a request from recognized chambers of commerce and industry and business organizations of each country, such as Confederation of Indian Industries (CII), Federation of Indian Chambers of Commerce and Industry (FICCI), National Association of Software Services Companies (NASSCOM) and Associated Chambers of Commerce and Industry in India (ASSOCHAM) and government recognized business and trade promotion councils in India and NIPPON KEIDANREN in Japan subject to the following:
(i) The stay in India
(ii) The stay in Japan
(b) Each side may issue entry visas to each other’s businessmen who are not covered under (a) above as follows:
(i) The Indian side may issue multiple entry business visas valid for up to 6 months with the period of stay up to 180 consecutive days to nationals of Japan who travel to India on a temporary visit to establish industrial or business venture, to explore possibilities of setting up industrial or business venture, for purchase or sale of industrial or commercial products, or for purpose of trade and other short term business related activities (not employment).
(ii) The Japanese side may issue single entry temporary visitor’s visas valid for 3 months with the period of stay up to 90 consecutive days to nationals of India who travel to Japan on a temporary visit for business purposes such as trade, short-term business projects and other short-term business related activities (not employment).
(c) The Japanese side may issue multiple entry temporary visitor’s visas valid for up to 3 years with the period of stay up to 90 consecutive days on each visit to family members (spouse and children) of the Indian businessmen mentioned in (a) above.
(d) Neither conversion of business visas to employment visas in India nor change of immigration status of persons who enter Japan with temporary visitor’s visas, not due to special unavoidable reasons, may be permitted, unless the applicant returns to his or her country of nationality and applies to the Embassy or Consulate of the other country.
2. Measures related to Employment Visas in India and Entry Visas for Working in Japan
Each side may issue employment visas/entry visas for working as follows:
(a)(i) The Indian side may issue multiple-entry employment visas to Japanese technicians or experts coming to India in pursuance of bilateral arrangements between the GOI and the GOJ or in pursuance of arrangements between non-governmental organizations including arrangements regarding cultural or academic exchanges that have been approved by the GOI for duration stated in the arrangement or a period of 5 years, whichever is less.
(ii)For those Japanese applicants who are not covered under (a)(i) above but are highly skilled and qualified professionals employed by a company, organization or industry in the IT software and IT enabled sectors in India India or of the undertaking in India . The applicant may be asked to submit proof of registration of the company, organization or industry under domestic laws and regulations. The Indian side may grant extensions of the period of stay for 2 more years on a year to year basis beyond the initial 3 years to those Japanese applicants who entered India with visas mentioned in this paragraph, in accordance with the procedures determined by the GOI. In this connection, the GOI will ensure that such procedures will be completed as expeditiously as possible.
(iii) For those Japanese applicants who are highly skilled and qualified professional coming to India for employment by a company, organization or industry in India or engaged in an undertaking in India on contract not covered in (a) (i) and (a)(ii) above, the Indian side may grant multiple-entry employment visas valid for up to 3 years or the term of assignment whichever is less. The Indian side may grant extensions of the period of stay for 2 more years on a year to year basis beyond the initial 3 years to those Japanese applicants who entered India
(iv) The Indian side may issue to family members (spouse and children who are dependent on the applicant and forming part of the same household) of the nationals of Japan mentioned in (i), (ii) and (iii) above, multiple entry visas co-terminus with employment visas issued to the nationals of Japan, upon presentation of proof of their relationship and a sponsoring letter from their employer.
(b) (i) The Japanese side may issue single entry visas for working valid for 3 months with the period of stay of 3 years or 1 year depending on the intended length of their stay in Japan to nationals of India who have an appropriate Certificate of Eligibility issued by the regional immigration offices of Japan. After the arrival in Japan , nationals of India
(ii) The Japanese side may issue to family members (spouse and children), who are dependent on the nationals of India mentioned in (b) (i) and forming part of the same household, single entry visas valid for 3 months with the period of stay co-terminus with the visas of the nationals of India depending on the intended length of their stay in Japan, on presentation of an appropriate Certificate of Eligibility issued to each family member by the regional immigration offices of Japan. After the arrival in Japan
(iii) The Japanese side may issue to family members (spouse and children), who are not dependent on the nationals of India mentioned in (b) (i) as well as family members (spouse and children) who are dependent on the national of India but not forming part of the same household, multiple entry visas valid for up to 3 years with the period of each of stay up to 90 days, on presentation of proof of relationship with the national of India and proof of his or her employment in Japan.
(iv) In case of parents of the nationals of India mentioned in (b)(i)or parents of his or her spouse, the Japanese side may issue single entry temporary visitor’s visas valid for 3 months with the period of stay up to 90 consecutive days on presentation of proof of relationship, travel bookings and documents to prove the capacity of the applicants or nationals of India mentioned above to cover their travel expenditures.
(c)The nationals of Japan and their family members mentioned in (a) above will complete formalities for residence permits by applying to the Foreigners’ Regional Registration Office under the Ministry of Home Affairs of India (hereinafter referred to as “FRRO”) within 14 days after their arrival in accordance with the relevant regulations of India . The residence permits issued by the GOI above need to be renewed on annual basis.
3. Measures related to Tourist Visas in India and Temporary Visitor’s Visas for the Purpose of Sightseeing in Japan
Each side may issue tourist visas/temporary visitors visas for the purpose of sightseeing as follows:
(a)The Indian side may issue multiple entry tourist visas valid for up to 5 years with the period of stay up to 90 consecutive days to the nationals of Japan India Japan with tourist visas, after initial entry into India , may visit another country largely on account of neighbourhood tourism and need to re-enter India within 60 days, before finally exiting. Such tourists may be permitted up to 3 re-entries (on the basis of the needs) by the Indian Missions or Posts subject to their submission of a detailed itinerary and supporting documentation such as ticket bookings.
(b)
(i) The Japanese side may issue single entry temporary visitor’s visas for the purpose of sightseeing valid for 3 months with the period of stay up to 90 consecutive days ,on presentation of travel bookings, to the nationals of India, as well as to their families, who meet certain criteria, such as members of companies listed on recognized stock exchange, members of state and municipal enterprises, government officials and cultural figures and other persons judged by the Chief of Mission to be reliable.
(ii) The Japanese side may issue single entry temporary visitor’s visas for the purpose of sightseeing valid for 3 months with the period of stay up to 90 consecutive days to those other than (i) above on presentation of travel bookings as well as documents to prove the applicant's capacity to cover their travel expenditures.
(iii) If the nationals of India participate in package tours organized by tour operators registered with the GOI and designated by the Japanese side, single entry temporary visitor’s visas for the purpose of sightseeing valid for 3 months with the period of stay up to 90 consecutive days may be granted on presentation of necessary documents by the tour operator.
4. Measures related to Student Visas in India and Entry Visas for Students in Japan
Each side may issue student visas/entry visas for students as follows:
(a) The Indian side may issue student visas to Japanese applicants valid for up to 5 years, or duration of the course, whichever is shorter on presentation of a letter of confirmed admission from a recognized educational institution, proof of finances to cover travelling expenses and other expenditure in India
There will be no restriction with reference to the number of courses a Japanese student can attend in one institution or multiple institutions, provided the institutions are recognized. In case a Japanese student wishes to change a course midway and join another course, the period of validity of the residence permit will be adjusted to the duration of the latter course.
(b) The Japanese side may issue single entry visas valid for 3 months, with the period of stay up to 2years and 3 months to Indian students to receive education at Japanese colleges ,high schools or equivalent educational institutions or to take courses such as Japanese language at other equivalent educational schools. Indian students can obtain from the regional immigration offices a multiple re-entry permission valid for up to 2 years and 3 months consistent with the period of stay marked on the landing permission granted at the port of entry. The GOJ will endeavour to deal with applications for extension of the period of stay from such students of India beyond the permitted period of stay, as the case may be, for studying in Japan
(c) In the case of applicants covered under the Cultural Exchange Programme or the Education Exchange Programme or other mutually approved Programme between the two sides, each side may issue relevant visas on presentation of a letter of authorization from the concerned Government body in each other’s country.
5. Short-Term Visas (India )/Temporary Visitor’s Visas (Japan
Each side may issue relevant entry visas to the nationals of one country travelling to the other country for conferences, seminars and other short-term academic exchanges in accordance with applicable procedures as set forth in laws and regulations of each side.
6(a) Each side will, within a reasonable period that does not exceed 5 working days after an application requesting entry visas is considered complete under its domestic laws and regulations, inform the applicant of the decision concerning the application. At the request of the applicant, each side will endeavour to provide, without undue delay, information concerning the status of the application.
(b)The period referred to in paragraph (a) can be extended if additional consideration on the documents provided by the applicant is necessary.
7. Each side reserves the right, for reasons of security, public order or public health, to suspend temporarily, either in whole or in part, the implementation of the foregoing measures upon notification given to the other side through diplomatic channels.
8. The foregoing measures will be implemented from a date to be mutually decided by both sides through diplomatic channels. These measures are subject to all other conditions for grant of visas as per the extant instructions issued by both Governments being applicable. Such extant instructions are issued subject to the applicable laws and regulations of each country.
9. Both sides may, as necessary, hold consultations through diplomatic channels to deal with any issues that may arise relating to the foregoing measures.
10. Each side, when it terminates the foregoing measures, either in whole or in part, will give 1 month’s notice to the other side in writing through diplomatic channels.
11. Both sides will continue consultations to explore measures to further simplify visa procedures.
Signed at Tokyo , Japan
*****
HS/SH/LV
(Release ID :66564
Subscribe to:
Posts (Atom)