india, china sign deals worth us$ 22 billion

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India, China sign deals worth US$ 22 billion Leading companies from India and China on Saturday, May 16, 2015 signed 26 deals in Shanghai, worth

US$ 22 billion. Among the Indian firms that signed the deals were Adani Group, Bharti Airtel and Welspun. The Agreements spanned a range of sectors, including renewable energy, power, steel, and small and medium enterprises.

Among the major agreements was Bharti’s tie-up for a credit facility of US$ 2.5 billion with China Development Bank and Industrial and Commercial Bank of China. Adani Group signed an agreement with Golden Concord Holdings to establish an integrated photovoltaic (PV) industrial park in the Mundra special economic zone and to explore investment in gas-based power generation and the natural gas sector.

In another pact, Adani Ports & SEZ and Guangzhou Port Authority agreed to establish a “sister port relationship” between the Mundra and Guangzhou ports. Welspun Energy entered into a memorandum of understanding with Trina Solar of China to jointly set up a PV industry park for the production of 500 Mw of PV cell and 500 Mw of PV solar modules in India.

“(These) are a reflection of the strong interest of Chinese companies to invest in India and contribute towards the “Make in India” initiative,” said an official statement. It added the agreements would also facilitate cooperation between Indian and Chinese companies in the film and entertainment sector and “help make more Chinese friends/audiences aware of India’s strength in this area”.

Among those that signed agreements on the Saturday were IL&FS and Industrial & Commercial Bank of China (ICBC); IL&FS Energy Development Co. and China Huaneng Group (for the 4,000-Mw Nana Layja thermal power project) and Jindal Steel and Power and ICBC.

While Infosys entered into an agreement to build a ‘China-India Information Service Industry Corridor’ in China’s Qinnan district, Bhushan Power and Steel signed a pact with China National Technical Import and Export Corporation for an integrated steel project in Gujarat.

“This is a historic opportunity for Chinese companies,” Modi said, addressing the India-China Business Forum here, after interacting with 22 chief executives of top Chinese companies, including Alibaba Group Chairman Jack Ma.

“We have committed ourselves to creating and improving the business environment. I can assure you once you decide to be in India, we are confident we will make you more and more comfortable,” the PM said.

“India is ready for business. You must be sensing the winds of change in India. I only advise you to come and feel the same,” he told business heads from both countries. “You are the factory of the world, while we are the back office of the world. You give thrust on production of hardware, while India focuses on software and services,” he said.

Modi assured Chinese businessmen India’s economic environment had changed. “Our regulatory regime is much more transparent, responsive and stable. We are taking a long-term and futuristic view on issues,” he said, adding a lot of efforts were underway to improve the ease of doing business.

Nothing that both countries had to tackle poverty, he said, “I am personally committed to take the cooperative process forward. That is why even as chief minister of Gujarat, I visited China. As prime minister, too, I am convinced and committed to exchange and cooperation for the socio-economic development of the two countries.”

สานกงานสงเสรมการคาระหวางประเทศ ณ กรงนวเดล สรปขาวเดนรายสปดาห

16 - 22 พฤษภาคม 2558 (อนเดย)


“We are very keen to develop the sectors in which China is strong. We need you involvement. The scope and potential, the breadth and length of infra-structure and related developments is very huge in India,” he said. The PM added India wanted to promote manufacturing in a big way, especially as this would create jobs for youth, who accounted for 65 per cent of the population. “Therefore, we want to make things in India.

For this we have launched a campaign called ‘Make in India’… We have to learn from you about the development of labour-intensive industries, creating conditions for sustainable foreign direct investment, skill development, infra-structure creation and the export-led development model.

------------------------------------------------------------------------- Source: Sunday Business Standard, New Delhi Edition, May 17, 2015

EXIM Bank to set up subsidiary to push investments in CLMV nations

Indian Commerce Ministry has decided to set up a project development company under Global Procurement Consultants Ltd (GPCL, a consulting firm promoted by Exim Bank, to kick-start investments in Cambodia, Laos, Myanmar and Vietnam, or CLMV countries.

The move is part of the ministry’s efforts to derisk India from the impact of regional trade agreements and create new exporting clusters for Indian companies. The newly created subsidiary of GPCL will act as a facilitator by identifying opportunities, preparing feasibility reports and finally creating bankable projects in CLMV countries where Indian firms can set up manufacturing units, a government official said on condition of anonymity.

The subsidiary will subsequently create a number of special purpose vehicles with private entities, acquire a special economic zone (SEZ) or industrial park, develop it and then start allocating space in it to business entities in India against payments.

“We have to set up the subsidiary under the Companies Act and adequately manage it. “The government has allocated Rs. 1 billion for this fiscal and intends to provide Rs. 5 billion in total,” the official added. The official said the first destination for investment could be Vietnam where a textile park could be developed. Of the four CLMV countries, Vietnam is part of ongoing negotiations for a 12-member Trans Pacific Partnership agreement, which is expected to raise standards of trade, investment and intellectual property rights, making it difficult for non-members like India to gain market

access. India is hoping that a presence in Vietnam could help it gain easier access to markets of developed member-countries including the US and Canada.

According to Harish Anand, director at the Centre for Trade Facilitation and Research in Textiles, India is still a competitive location for business in cotton-based products and setting up shop in Vietnam may not make sense for textile makers. “We have easy access to raw materials here. Though labor will be available at a cheaper price in Vietnam, the logistical difficulties of Importing cotton yarn from India and storing it will outweigh the advantages,” he said. The government official cited above said India enjoyed enormous goodwill in the CLMV group and for geo-strategic reasons; too, the country wants to increase its presence in these countries.

“Investments in such countries will also help Indian companies to get integrated with the value chain of the East Asian economies,” he added. In his budget speech, finance minister Arun Jaitley said the Act East policy of the government endeavor’s to cultivate extensive economic and strategic relations in south-East Asia.

“In order to catalyze investments from the Indian private sector in this region, a project development firm will, through separate special purpose vehicles (SPVs) set up manufacturing hubs in CLMV countries,” he said.

India’s exports to CLMV countries grew 38% to US$ 6.4 billion in 2013-14, while its imports increase 4.2% to $4 billion during the same year.

The CMLV countries cover 32% of geographical area of the ASEAN (Association of Southeast Asian Nations) region, and account for around 9% of ASEAN’s gross domestic product. These countries have been undergoing a transition from central planning to market economies. CLMV nations, considered among the fastest growing economies in the region, are primarily agrarian.

These economies are endowed with abundant natural resources and cheap labor, but they are plagued by underdeveloped infrastructure and logistics. Except Vietnam, the rest of the CLMV group is classified by the United Nations under the category of least developed countries.

------------------------------------------------------------------------- Source: Livemint, New Delhi Edition, May 21, 2015


India not yet ready to be hub for hi-tech devices Prime Minister Narendra Modi’s flagship campaign, “Make in India”, might have started gaining

momentum, thanks to investments from China, South Korea, and the US. But the Japanese electronic equipment major, Panasonic, says India is not yet ready for setting up high-end mobile devices manufacturing and technology unit. India lacks adequate skilled personnel to produce such high-tech devices, the company feels.

“India needs more skilled people. It’s more convenient for us to manufacture such products in Japan, since we have more than 80 years of experience (in manufacturing sophisticated instruments) said Hide Harada, managing officer of the IT products business division, Panasonic Corp. As half of its population is below 25 years, the country had identified skill development as a key area of focus. However, according to the Economic Survey report 2014-15, India’s efforts so far have failed to match the requirement.

Panasonic said it aimed to sell 100,000 units cumulatively of its rugged devices - Toughbook and Toughpad - in India by 2018.

------------------------------------------------------------------------- Source: The Business Standard, New Delhi Edition, May 21, 2015

Nepali Govt. mulls duty relaxation on import of corrugated sheets KATHMANDU, May 20, 2015: The Government is planning to relax customs duty on corrugated roofing

sheets imported from India and China realizing that domestic industries are unlikely to meet the growing demand in the aftermath of the earthquake which have rendered hundreds of thousands of people homeless.

The government has decided to provide cash incentive of Rs. 15,000 to earthquake-hit people for buying corrugated roofing sheets in rural areas. It is also preparing to step up vigilance and monitoring to ensure smooth supply, quality and stability in price of corrugated sheets.

Minister for Industry Mahesh Basnet said the government was preparing to relax customs duty on import of corrugate sheets, realizing that the material could be on short supply amid growing demand from earthquake-hit people. Earlier, local industries used to export around 50 % of their production to India. Remaining 50 % used to be consumed locally.

“It seems that domestic industries will meet only around 50 % of the demand. We plan to reduce customs duty on corrugated roofing sheets import

from India and China for few months to prevent its shortage,” Minister Basnet told My Republica. “Ministry of Finance is doing homework on how much duty can be waived off. We will have to make sure that price of imported and locally producedcorrugated roofing sheets will remain more or less the same.”

The government has held consultation with the representatives of four corrugated roofing sheets manufacturers – Bhagawati Steel industries Ltd, Hulas Steel Industries Ltd, Arati Steels Ltd and Rajesh Metal Craft Pvt.Ltd – to take stock of their production and supply capacity in the wake of the disaster.

According to Minister Basnet, these four industries can operate up to 80 % of their installed capacity, or produce a total of around 13,000 bundles per day, if electricity is supplied round the clock.

The government estimates that each 700,000 damaged home needs two bundles of roofing sheets. “We plan to complete the rebuilding and roofing works within

one and a half months. This means we will need around 1.4 million bundles of roofing sheets during the next one and a half months. While local industries can supply around 585,000 bundles, we have to import the remaining from India and China,” Minister Basnet said, adding that the government will relax customs duty on such imports.

He also said that the government might mobilize National Trading Ltd – a government undertaking - for import and supply of roofing sheets.

Minister Basnet also told My Republica that the government has deployed a team of quality inspectors and security personnel in all four industries so that the price and quality of roofing sheets is not compromised by the suppliers.

He also said the government plans to mobilize police and army personnel to transport roofing sheets to remote areas where private transporters cannot reach. “The purpose is to make sure that quake-hit people do not face shortage of roofing sheets to rebuild their homes,” he added.

----------------------------------------------------------------------- Source: My Republica, Kathmandu, May 20, 2015

india, china sign deals worth us$ 22 billion

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