Trade with Neighbouring Countries

India enjoys trade surplus with all members of SAARC comprising Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka.  Trade between India and China currently stand at USD $ 65.87 in 2013-14.  China is currently the largest trading partner in bilateral trade.  Myanmar (an ASEAN country) also enjoys a high level of bilateral trade through border trade arrangement at Moreh (Manipur). Joint Trade and Investment Agreement between India and ASEAN group of countries is expected to also boost bilateral trade with South East Asian countries. Unctad Report on FDI As per UNCTAD World Investment Report, 2014, India received FDI of US $ 28 billion in 2013 compared to US $ 24 billion in 2012. Further as per UNCTAD World Investment Report, 2014 India’s rank from the point of view of Transnational Corporations (TNCs) among top prospective host economics is 4th as against 3rd as per the UNCTAD World Investment Report, 2013. The UNCTAD Report mentions that although foreign investment continues to flow into single brand retail, no new projects have been recorded in multi brand retail. Roadmap to Boost Investment Between Japan and India India and Japan have taken several steps to boost investment between the two countries. As part of India-Japan Strategic and Global Partnership, the two sides have launched a Special Economic Partnership Initiative (SEPI) which includes the Delhi-Mumbai Industrial Corridor (DMIC) project. India and Japan have also signed the Comprehensive Economic Partnership Agreement (CEPA) in February, 2011. The CEPA is a comprehensive agreement which contains, inter-alia, agreement on investment also. In the Joint Statement issued on the occasion of the visit of the Japanese Prime Minister to India in December, 2011, the two Prime Ministers stressed the importance of infrastructure development in the areas between Chennai and Bengaluru, where an increasing number of Japanese companies including SMEs have made direct investments to establish their manufacturing base or other forms of business presence. During the visit of the Minister of Economy, Trade and Industry (METI) of Japan to India on September 11, 2013, a Joint Statement was signed by the Minister of Commerce and Industry of India and Minister of Economy, Trade and Industry of Japan. Both sides committed to an Action Plan to promote two way investments between India and Japan. Action on various initiatives including the Delhi Mumbai Industrial Corridor project and the Chennai Bengaluru Industrial Corridor project is progressing ahead. Promotion of Services Sector Exports Government of India has taken a number of measures to boost export of services. The Foreign Trade Policy (FTP) 2009-14 of Government of India aims at accelerating the growth of export of services so as to create a powerful and unique ‘Served from India’ (SFIS) brand. As per para 3.12 of the Foreign Trade Policy (2009-14), which is available on the website of Directorate General of Foreign Trade (DGFT) atwww.dgft.gov.in, incentive is available to providers of specified services in the form of duty credit scrip equivalent to 10% of free foreign exchange earned. With effect from 18.04.2013, the entitlement is on the basis of the net foreign exchange earned. In addition, financial assistance is provided by Department of Commerce to Services Export Promotion Council (SEPC), Telecom Exports Promotion Council (TEPC) and Electronics & Computer Software Export Promotion Council (ESC EPC) under Market Access Initiative (MAI) and Market Development Assistance (MDA) schemes for promotion of exports. In order to move further in this direction, Services Conclave was organized by Department of Commerce in November, 2013 to discuss issues and bottlenecks hindering export of services from India. Government has decided to make this event an annual feature.