India-ASEAN services agreement to be signed in December
The much-awaited pact on trade in services and investment between India and the Association of Southeast Asian Nations (ASEAN) is likely to be a reality finally by the end of next month, which will open up greater job opportunities for India’s professionals in information technology, healthcare, designing and research. India and the 10-member Asean trading bloc already have a goods agreement in place that came into force from August 2011, providing tariff-free access to a range of product lines such as textiles, pharmaceuticals, chemicals, engineering products, processed food and auto parts among others. Hence, after the signing the deal in services and investment, the free trade agreement will be called a Comprehensive Economic Partnership Agreement (CEPA). It is expected to be signed on the sidelines of the World Trade Organisation ministerial meet in Bali in December. According to a senior ministry of external affairs (MEA) official, the CEPA with Asean will be operationalised by July 2014. Ever since the talks began in 2005, India’s main demand has been to obtain greater job opportunities for its professionals in the 10 member-Asean countries of Singapore, Malaysia, Indonesia, Vietnam, Thailand, the Philippines, Cambodia, Laos, Brunei and Myanmar. However, the deal has now been finally sealed during Prime Minister Manmohan Singh’s visit to Brunei on October 10 during the Asean-India Summit at Brunei Darussalam. Pact to open up greater job opportunities for India’s professionals in the field of IT,healthcare, designing and research. Both sides aims at increasing trade to $100 billion by 2015.
(Source: Business Standard)
India Inc unable to reap benefits of Goods FTA with ASEAN: FICCI
Indian companies have been unable to capitalise on the benefits arising out of the free trade agreement (FTA) on "Goods" between India and ASEAN even as imports from the region have risen on account of duty reductions, a survey by industry body Ficci has found. Indian companies have been unable to capitalise on the benefits arising out of the free trade agreement (FTA) on "Goods" between India and ASEAN even as imports from the region have risen on account of duty reductions, a survey by industry body Ficci has found. Half the respondents in the survey felt that the FTA in 'Goods' had either no impact on their exports or an adverse impact, owing to the fact that the FTA is restricted to 'Goods' where India's manufacturing sector is unable capitalise and also due to lower duties offered by ASEAN to China, through the China-ASEAN FTA. As for imports into India, 35 per cent of the respondents acknowledged that current FTA in goods has a positive impact on their imports into India due to duty reductions by India, which helps to reduce input costs. The survey covered sectors like pharmaceuticals, automotive, manufacturing, plastics, chemicals, consulting services, infrastructure & construction, healthcare, agriculture products, mining and services. The major bottlenecks in initiating business with ASEAN relate to labour norms, licensing processes, registrations, quotas and banking infrastructure related impediments that in turn hit flow of funds, the survey revealed. The Association of Southeast Asian Nations (ASEAN) was founded on August 8, 1967 in Bangkok, Thailand. Its member countries are Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Vietnam, Myanmar, Laos and Cambodia.
(Source: Economic Times)
STC to import 6 tonnes of gold to meet festival demand
State-run STC (State Trading Corporation) will import six tonnes of gold to boost supply of the precious metal in the domestic market during the festival season, an official said. There is supply crunch (in India) and demand is also higher because of the festival season and STC has been allocated to import 6 tonnes of gold in two tranches to meet the rising demand. The allocation order has been issued by the Directorate General of Foreign Trade (DGFT), he added. Gold in the domestic market is being sold at a high premium as there is a supply crunch due to import curbs imposed by the government. India is the world's largest consumer of gold. State Trading Corporation (STC) is one of the gold import agencies in the country. It has been allowed to import the metal with a condition that it will supply 20 per cent of the shipment to exporters. In order to contain current account deficit, the government has imposed several restrictions on gold imports in the past few months. In August, import duty was raised to 10 per cent from 8 per cent. It also banned import of gold bars, coins and medallions.
(Source: Economic Times)
Demand for physical gold to be muted this Dhanteras
The demand for physical gold on Dhanteras, the second day of the Diwali festival, considered auspicious to buy the yellow metal, is likely to stay muted this year. While domestic gold prices are trading at levels similar to the last festive season, bullion traders say demand is likely to be “dismal”. According to Bombay Bullion Association (BBA) estimates, demand for gold coins and jewellery declined by 75% and 60% respectively in the two weeks leading to Dhanteras, compared with the same period last year. Some experts, however, said the slowdown in investment demand may be more severe than the slowdown in demand for physical jewellery. Investment demand is currently capped due to price fluctuations and the future outlook on prices. Even restrictions on the sale of coins and bars have impacted investment demand. However, jewellery demand is likely to be less impacted as most of it is wedding-linked.
(Source: Financial Express)
Govt relaxes outsourcing norms for SEZ units
In a bid to facilitate manufacturing and augment exports, the commerce ministry has allowed manufacturing units in special economic zones (SEZs) to sub-contract work for up to three years, instead of just one year allowed at present. However, the relaxation would apply to only those manufacturing units that have substantial exports, with average annual shipments of Rs 10,00 0,000,000 or more in at least two out of four years. This relaxation further eases investment norms in SEZs as in August the government had amended SEZ rules and said that multi-services special economic zones will be treated on a par with single-product SEZs, with the minimum area slashed to half from 100 hectare. The move allowed multi-product SEZ developers with a minimum land requirement of 500 hectare to set up multi-services SEZ on an additional 50 hectare of land. Moreover, addition of land to an existing SEZ that contains a port or a manufacturing unit will not be eligible for any duty benefits, but any addition to these structures after their inclusion in an SEZ will be eligible for fiscal benefits.
(Source: Financial Express)
