Increasing Indian Share in Global Trade

The export target for the year 2013-14 was fixed at 325 US $ Billion. India’s percentage share of the trade to the world trade for the year 2013 is 2.07 %. India’s share in world trade is given below: Year Total Trade : Value in US $ Billion Percentage share of India   inWorld Trade World India 2011 36830 767.4 2.08 2012 37012 785.4 2.12 2013 37658 778.3 2.07 Source: World Trade Organisation ( Calendar Year ) With a view to increase our share of trade in global trade, the Government of India continuously monitors the export performance of different sectors and takes need based measures from time to time, keeping in view the financial and overall economic implications. Review of Foreign Trade Policy is a part of this strategy, andAnnual Supplements to the Foreign Trade Policy (2009-14) were announced time to time. The last Annual Supplement was announced on 18.4.2013. Further in order to boost Exports, Government has taken a number of measures, which, inter alia, include the following:                                                         i.            Two percent Interest Subvention Scheme,  which was available for certain export sectors viz. Handicrafts, Carpet, Handlooms, SMEs, Readymade Garments, Processed Agriculture Products and Toys, was  widened to include 134 tariff lines of Engineering Sector w.e.f 1st January, 2013.                                                      ii.            Government enhanced the rate of Interest Subvention from 2% to 3 % with effect from 1.8.2013.                                                     iii.            As part of product diversification and market diversification strategy, 47 new items were added to Market Linked Focus Product Scheme (MLFPS) and 122 new items were added to the Focus Product Scheme (FPS). Government also notified 153 hi-tech products on 10.7.2013 under Focus Product Scheme making them eligible for duty script at the rate of 2 %.

Trade Deficit with China

The details of import-export and trade deficit with China during the last three years are given below:- Value in USD Million Year Import Export Total Trade Trade Deficit I II III IV V 2011-12 55,313.58 18,076.55 73,390.13 (-)37,237.03 2012-13 52,248.33 13,534.88 65,783.21 (-)38,713.45 2013-14 51,049.01 14,829.31 65,878.32 (-)36,219.70 (Source; DGCI&S) Given the strength of China’s Manufacturing sector Chinese export to India relies strongly on manufactured items addressing the demand of fast expanding sectors like telecom and power in India along with other low priced products. Subsides provided by Chinese Government to their manufacturing sectors contribute towards the low input costs of Chinese manufactured products. The comparatively less developed manufacturing sector in India and greater reliance on primary products in our trade basket is proving to be an impediment. The limited market access afforded to Indian products in China is also a contributing factor to the growing trade deficit. With a view to reducing trade deficit with China, efforts are being made to diversify the trade basket with emphasis on manufactured goods. The Government is also pursuing market access issues to tackle non-tariff barriers in the Chinese market at different fora. At the Ministerial level, there is a India-China Joint Group on Economic Relations, Trade Science and Technology (JEG) where trade related issues are taken up regularly. The next meeting of the 10th JEG is scheduled to be held in China in this year. Also, Indian exporters are encouraged to participate in major trade fairs in China to show-case Indian products in the Chinese market and increase engagement with Chinese companies. Participation of Indian exporters in trade fairs educates the Chinese importers about niche Indian products. Business to Business relations are encouraged through schemes such as Market Access Initiative (MAI)/Market Development Assistance (MDA). Trade deficit can be reduced to sustainable levels through more exports from India to China as well as by China’s investing in building manufacturing capacities in India. In 2013, three MoUs were signed on products such as bovine meat, fishery products, pharma and an agreement was signed on feed and feed ingredients. During the recent visit to China in June, 2014, an MoU on Industrial parks has been signed. These measures are expected to boost exports and reduce trade deficit to some extent

FDI Limit in Various Sectors

FDI up to 100% is allowed on the automatic route in most sectors/activities, subject to applicable laws/ regulations; security and other conditionalities. FDI is prohibited in Lottery Business including Government/private lottery, online lotteries, etc.; Gambling and betting including casinos etc.; chit funds; Nidhi company; trading in Transferable Development Rights(TDRs); Real Estate Business or Construction of Farm Houses; Manufacturing of Cigars, cheroots, Cigarillos and cigarettes, of tobacco or of tobacco substitutes; activities/sectors not open to private sector investment e.g. Atomic Energy and Railway Transport (other than Mass Rapid Transport Systems). FDI, in various sectors, is allowed, up to the different limits, varying from 20% to 100%, subject to applicable laws/ regulations; security and other conditionalities. The detailed information is available in ‘Consolidated FDI Policy Circular 2014’ at this Department’s website. As regards proposal to increase the cap in some sectors, including reasons therefor, Finance Minister, in his Budget Speech, given on 10.7.2014, has made following statement: “The policy of the NDA Government is to promote Foreign Direct Investment (FDI) selectively in sectors where it helps the larger interest of the Indian Economy. FDI in several sectors is an additionality of resource which helps in promoting domestic manufacture and job creation. India today needs a boost for job creation. Our manufacturing sector in particular needs a push for job creation. India today is the largest buyer of Defence equipment in the world. Our domestic manufacturing capacities are still at a nascent stage. We are buying substantial part of our Defence requirements directly from foreign players. Companies controlled by foreign governments and foreign private sector are supplying our Defence requirements to us at a considerable outflow of foreign exchange. Currently we permit 26 per cent FDI in Defence manufacturing. The composite cap of foreign exchange is being raised to 49 per cent with full Indian management and control through the FIPB route. The Insurance sector is investment starved. Several segments of the Insurance sector need an expansion. The composite cap in the Insurance sector is proposed to be increased up to 49 per cent from the current level of 26 per cent, with full Indian management and control, through the FIPB route. To encourage development of Smart Cities, which will also provide habitation for the neo-middle class, requirement of the built up area and capital conditions for FDI is being reduced from 50,000 square metres to 20,000 square metres and from USD 10 million to USD 5 million respectively with a three year post completion lock in. To further encourage this, projects which commit at least 30 per cent of the total project cost for low cost affordable housing will be exempted from minimum built up area and capitalisation requirements, with the condition of three year lock-in. FDI in the manufacturing sector is today on the automatic route. The manufacturing units will be allowed to sell its products through retail including E-commerce platforms without any additional approval.”

Trade Deficit with China

The details of import-export and trade deficit with China during the last three years are given below:- Value in USD Million Year Import Export Total Trade Trade Deficit I II III IV V 2011-12 55,313.58 18,076.55 73,390.13 (-)37,237.03 2012-13 52,248.33 13,534.88 65,783.21 (-)38,713.45 2013-14 51,049.01 14,829.31 65,878.32 (-)36,219.70 (Source; DGCI&S) Given the strength of China’s Manufacturing sector Chinese export to India relies strongly on manufactured items addressing the demand of fast expanding sectors like telecom and power in India along with other low priced products. Subsides provided by Chinese Government to their manufacturing sectors contribute towards the low input costs of Chinese manufactured products. The comparatively less developed manufacturing sector in India and greater reliance on primary products in our trade basket is proving to be an impediment. The limited market access afforded to Indian products in China is also a contributing factor to the growing trade deficit. With a view to reducing trade deficit with China, efforts are being made to diversify the trade basket with emphasis on manufactured goods. The Government is also pursuing market access issues to tackle non-tariff barriers in the Chinese market at different fora. At the Ministerial level, there is a India-China Joint Group on Economic Relations, Trade Science and Technology (JEG) where trade related issues are taken up regularly. The next meeting of the 10th JEG is scheduled to be held in China in this year. Also, Indian exporters are encouraged to participate in major trade fairs in China to show-case Indian products in the Chinese market and increase engagement with Chinese companies. Participation of Indian exporters in trade fairs educates the Chinese importers about niche Indian products. Business to Business relations are encouraged through schemes such as Market Access Initiative (MAI)/Market Development Assistance (MDA). Trade deficit can be reduced to sustainable levels through more exports from India to China as well as by China’s investing in building manufacturing capacities in India. In 2013, three MoUs were signed on products such as bovine meat, fishery products, pharma and an agreement was signed on feed and feed ingredients. During the recent visit to China in June, 2014, an MoU on Industrial parks has been signed. These measures are expected to boost exports and reduce trade deficit to some extent

Communication Satellites

GSAT-15 is approved by the Government on July 17, 2013. It will carry 24 Ku-band transponders and a GAGAN (GPS Aided Geo Augmented Navigation) payload. GSAT-15 spacecraft will provide replacement for the Ku-band capacity of INSAT-3A and INSAT-4B spacecrafts to augment and support the existing DTH and VSAT services in the country. The GAGAN payload of GSAT-I5 will meet the in-orbit redundancy requirement for Safety of Life (SOL) operations benefiting the civil aviation services in the country. GSAT-16 is approved by the Government on July 17, 2013. It will carry 48 transponders in C-band, Ku-band and Upper Extended C-bands. GSAT-16 spacecraft will provide replacement for the INSAT-3E spacecraft and will also augment the C and Upper Extended C-band capacity. The spacecraft will be utilized in augmenting and supporting the existing telecommunication, television, VSAT and other satellite based services in the country. The Government has approved a budgetary support of ` 859.50 Crores including a foreign exchange component of ` 622.50 Crores for realization of GSAT-15 spacecraft project including launch services and insurance. The Government has approved a budgetary support of ` 865.50 Crores including a foreign exchange component of ` 628 Crores for realization of GSAT-16 spacecraft project including launch services and insurance. GSAT-15 is targeted to be launched in mid -2015 and GSAT-16 is scheduled to be launched in 2014-15.

PM meets Brazilian President Dilma Rousseff in Brasilia

Both leaders call for expanding bilateral ties, and stress on the need for reform of the United Nations 3 MoUs signed

Brazilian President Dilma Rousseff hosted Prime Minister Narendra Modi in Brasilia on the margins of the Sixth BRICS Summit. Although it is not a bilateral visit, President Rousseff, in a special gesture, received Prime Minister of India with full military honours at the Presidential palace before their meeting over breakfast. Prime Minister warmly congratulated President Rousseff and the people of Brazil for an excellent FIFA world cup, which showed the World Brazil`s excellent organizational skills and warm hospitality. He thanked President Rousseff for a well organized and successful BRICS summit, and in particular, arranging a meeting for BRICS with South American leaders. Shri Narendra Modi described the sixth summit hosted by Brazil as a historic one, which has produced two important agreements - the New Development Bank and the BRICS Contingent Reserve Arrangement - and lauded President Rousseff for her guidance during the Summit. Describing Brazil as a key global partner for India, Prime Minister noted that as two democracies and major emerging economies, India and Brazil not only had vast potential for bilateral cooperation, but also to strengthen each other in international forums and advance the interest of the developing world at large. He also noted that Gujarat has emerged as a prime driver of India`s economic relations with Brazil. President Rousseff emphasized the special place this relationship enjoyed in Brazil`s foreign policy, because of the potential for bilateral cooperation and the international significance of their partnership. She congratulated Shri Narendra Modi for his impressive victory in the elections and wished him all success for India`s progress and development. The two leaders recalled the historical and cultural ties between the two countries, despite the distance, including the Gir cows that were brought to Brazil from India, the textiles and the fruits that came from India to Brazil since 18th and 19th centuries. The two leaders also agreed to take steps to further expand and diversify trade and investment flows and deepen cooperation in agriculture and dairy science, conventional and renewable energy, space research and applications, defence, cyber security and environment conservation. They also agreed to intensify their cooperation in international forums and multilateral institutions, including the G20. As leaders of G4 countries, Prime Minister Shri Narendra Modi, and President Rousseff called for urgent progress on reforms of the United Nations, including the Security Council, by the time of the seventieth anniversary of the UN in 2015. Prime Minister expressed hope that he would be able to visit Brazil on a full bilateral visit soon and invited President Rousseff to visit India. Following their meeting, the two sides signed three agreements: -MoU on cooperation in the field of environment -Implementing arrangement establishing cooperation in augmentation of a Brazilian earth station for receiving and processing data from Indian Remote Sensing (IRS) Satellites -MoU on cooperation in the field of mobility and consular issues.

Policy for Welfare of Minorities

The present Government has accelerated the pace of welfare of six notified minorities including the implementation of the existing schemes. The thrust area of the present Government is skilling of minority youth and their placement and also preservation of Heritage of Minorities including promotion of their traditional Arts and Crafts. These programmes/schemes are being reviewed and restructured in accordance with the policies of the present Government.                                                            The details of the steps being taken by the present Government for the welfare of the Minorities are- -               USTAAD:- The Scheme aims at upgrading Skills and Training in preservation of traditional   Ancestral Arts/Crafts of minorities. -               Hamari Darohar:- The Scheme aims to preserve rich heritage of minority communities in context of Indian culture. -               Khwaza Garib Nawaz Senior Secondary School will be established at Ajmer by Maulana Azad Education Foundation (MAEF) to give a fillip to minority education. -               Nai Manzil: A bridge course to bridge the academic and skill development gaps of the deeni Madrasa passouts with their mainstream counterparts. -               Strengthening of State Wakf Boards: The scheme envisages to provide assistance for meeting the training and administrative cost of State Wakf Boards, removal of encroachment from Waqf Properties and also strengthening of Zonal/Regional offices of Waqf Boards. The details of steps taken by the previous Government for minority welfare and achievements made thereof include ·                     Multi Sectoral Development Programme (MsDP): -      This is an area development scheme which aims to improve the quality of life of the people and reduce imbalances in the Minority Concentration Districts (MCDs). Identified development deficits are addressed through a district specific plan with provision of infrastructure creation for schools, sanitation, pucca housing, drinking water and electricity supply, besides beneficiary oriented schemes. The focus of this programme is on rural and semi-rural areas of the identified 90 Minority Concentration Districts. The scheme has been restructured for implementation during 12th Five Year Plan. Block has been made the unit of planning in place of district, the programme has been expanded to minority concentration towns/cities and cluster of minority concentration villages. The restructured programme covers 710 Minority Concentration Bocks (MCBs) & 66 Minority Concentration Towns (MCTs) covering 196 districts of 26 States in the country. This would sharpen the focus on minority concentration areas.Since inception, projects of Rs. 6310.61 Crore have been approved under MsDP and Rs. 4534.25 Crore has been released for its implementation. 1092 Schools building, 20,756 additional Class rooms, 645 hostels, 3645 Health Centers, 34,533 Anganwadi Centers, 117 ITIs, 44 Polytechnic Institutes, 40,799 Drinking Water supply, 3,35743 houses on Indra Awas Yojana pattern have been approved under MsDP till 31st March,2014. ·                        Pre-matric Scholarship Scheme:-   Under this Scheme, scholarships are awarded to minority students up to class X, who have secured not less than 50% marks in the previous final examination and the annual income of their parents/ guardian from all sources does not exceed Rs. 1.00 lakh. 30% of the scholarships are earmarked for girl students. During the year 2013-14 total achievement is 7794190 and the amount released of Rs. 963.79 Crore. ·                        Post-matric Scholarship Scheme:-    Under this Scheme, scholarships are awarded to minority students from class XI onwards who have secured not less than 50% marks or equivalent grade in the previous final examination and the annual income of whose parents/ guardian from all sources does not exceed Rs.2.00 lakh. 30% of the scholarships are earmarked for girl students. During the year 2013-14 total achievement is 890467 and the amount release of Rs. 515.76 Crore. ·                        Maulana Azad National Fellowship For Minority Students: -    The objective of the Fellowship is to provide integrated five year fellowships in the form of financial assistance to minority students to pursue higher studies such as M.Phil and Ph.D. The Fellowship covers all Universities/Institutions recognized by the University Grants Commission (UGC). 30% of the Scholarships are earmarked for the girl students. During the year 2013-14 total Fellowship sanctioned 3776 under the scheme and the amount release of Rs. 50 Crore. ·                        Merit-cum Means based Scholarship: -   The Merit-cum means based Scholarship Scheme provides financial assistance to the poor and meritorious minority students pursuing professional studies at graduate and post-graduate levels. 30% of the scholarships are earmarked for girl students. ·      Free Coaching and Allied Scheme: -     Under this scheme, candidates belonging to the minority community are provided financial assistance for coaching in Government and the private sector institutes for imparting coaching/training for Competitive Exams, Information Technology and other employment oriented courses. 30% of the scholarships are earmarked for girl students. During the year 2013-14 total 9997 no. of students benefited under the fund released of Rs. 236642000. ·                        National Minorities Development & Finance Corporation (NMDFC): -    Government contributes equity capital to NMDFC for implementation of its schemes at concessional rates of interest which are viz. micro financing scheme, term loan, educational loans, skill development and Mahila Samridhi Yojana etc. During 11th Five Year Plan and two years of 12th Five Year Plan, NMDFC has disbursed total loans worth Rs. 1673.76 Crore covering 6.46 Lakh minority beneficiaries. ·                        Grant-in-aid to Maulana Azad Education Foundation (MAEF): -    Grants-in-aid are released to MAEF towards its Corpus Fund. MAEF provides Grant-in-aid to the minority institutions for infrastructure development and distribution of scholarships to the minority girl students studying in classes XI and XII. The expenditure on these schemes is met out of the interest earned on the Corpus Fund. Till date, amount of Rs.910 crore has been released towards the corpus fund of MAEF. ·               Maulana Azad Sehat Scheme: The Scheme aims to provide annual health check-up of students studying in institutions aided by Maulana Azad Education Foundation and also provides financial assistance upto Rs.2 lakhs for minority students for serious illnesses studying in institutions aided by Maulana Azad Education Foundation. ·               Computerization of records of State Wakf Boards: In order to streamline record keeping of the Waqf lands, introduce transparency & social audit, computerize the various functions/processes of the Waqf Boards and develop a single web based centralized application, computerization of the records of the State Waqf Boards is carried out with the help of Central financial assistance. An amount of Rs. 16.18 Crore has been release to the State Waqf Boards (SWB), Central Waqf council and National Informatics Center (NIC) till date. The Centerlized Computing facility has been setup in 27 SWBs and data entry in Waqf Management System of India (WAMSI) Modules is in progress as on date, 3, 08,443 no. of waqf properties have been entered in registration Modules, 11,588 no. of Waqf properties entered in return number, 2,725 no. of Waqf properties entered in leasing module and 5,062 no. of Waqf properties entered in litigation module. ·               Establishment of National Waqf Development Corporation for the development of Waqf properties in the country. ·               Nai Roshni:-    A scheme for Leadership Development of Minority Women has been launched from 2012-13 with the objective to empower and instill confidence in women, by providing knowledge, tools and techniques to interact with Government systems, banks, and intermediaries at all levels so that they are emboldened to move out of the confines of home and assume leadership roles. The scheme is implemented through Non-Governmental Organizations (NGOs).  During 2012-13, Ministry has sanctioned Rs. 10.45 Crore and supported training of 36950 women in 12 States. During 2013-14, Ministry has sanctioned Rs. 11.96 Crore for training of 60,875 women in 24 States. ·               Seekho Aur Kamao: -     The Ministry has launched “Seekho Aur Kamao (Learn and Earn)” a new 100% Central Sector Scheme for Skill Development of minorities in September 2013. The scheme is implemented by private professional skill development organizations/companies. The scheme ensures employment of minimum 75% trained candidates, and out of them 50% in organized sector. The scheme reserves minimum 33% seats for minority women. During 2013-14 under the scheme, Rs. 17.00 Crore were released for skill training of 20,164 minority youths. ·                     Jiyo Parsi:-    Jiyo Parsi is a new scheme for containing population decline of Parsis in India, that has been launched during the current year 2013-14 with the objective to reverse the declining trend of Parsi population by adopting a scientific protocol and structured interventions to stabilize their population and increase the population of Parsis in India. Ministry extends financial assistance for outreach programme/ advocacy and fertility treatment as per scheme guidelines. The scheme is implemented with assistance from Parzor Foundation with the help of Bombay Parsi Punchayet (BPP). Financial outlay for 12th Plan is Rs. 10.00 Crore under the scheme. During 2013-14, Rs. 0.41 Crore were released under Advocacy component. ·                      “Nalanda Project” is a Pilot Project for Development of Faculties of Minority Universities/ Minority Managed Degree Colleges (MMDCs) and higher educational institutions located in minority concentration areas, launched on 3rd March 2014 at Aligarh Muslim University, the Nodal Staff College of University Grants Commission. ·                         “Minority Cyber Gram” was launched for Digital literacy of Minorities in collaboration with Digital Empowerment Foundation in PPP Mode at village Chandauli, District Alwar, Rajasthan on 19.02.2014. Total 2,600 villagers have been targeted under this pilot project. ·                     Magazine “Minority Today”: -      To improve public interface, generate awareness and develop dialogue with target communities, Ministry has launched a quarterly tri-lingual (Hindi, English and Urdu) Magazine “Minority” Today in January, 2014. ·                     Support for Minority students clearing Prelims conducted by Union Public Service Commissions, Staff Selection Commission, State Public Service Commissions. The objective of the scheme is to provide financial support to the minority candidates clearing prelims conducted by Union Public Service Commissions, Staff Selection Commission, State Public Service Commissions to adequately equip them to compete for appointment to Civil Services in the Union and the State Governments and to increase the representation of the minorities in the Civil Services by giving direct financial support to candidates clearing Preliminary Examination. There is no State/UT wise allocation under this scheme. This scheme was launched in 2013-14, an amount of Rs. 95.25 lakh have been released to award Financial Assistance to 274 candidates under this Scheme in the current year. ·                     Further Prime Minister’s New 15 Point Programme for Welfare of Minorities is an overarching programme which covers various schemes of concerned Ministries/Departments either by earmarking15% of physical targets/financial outlays for the minorities or by specific monitoring of flow of benefits/funds to areas with substantial minority population. Presently 24 Schemes implemented by 11 Ministries/ departments including 7 Schemes of Ministry of Minority Affairs, are covered under this programme.