India & The World
INDIA AND USA (Free
INDIA & RUSSIA (Free
INDIA AND USA
India and United States of America (USA) signed a joint
declaration on 27 September 2013 in defence cooperation in research in defence,
defence technology transfer, co-development and coproduction of defence articles
and services and protecting each other’s sensitive technology and information.
Highlights of the Joint declaration in defence cooperation
The United States and India share common security
interests and place each other at the same level as their closest partners.
This principle will apply with respect to defence technology transfer,
trade, research, co-development and co-production for defence articles and
services, including the most advanced and sophisticated technology.
Both countries will work to improve licensing processes,
and, where applicable, follow expedited license approval processes to
facilitate this cooperation.
The U.S and India are also committed to protecting each
other’s sensitive technology and information.
The two sides will continue their efforts to strengthen
mutual understanding of their respective procurement systems and approval
processes, and to address process-related difficulties in defence trade,
technology transfer and collaboration.
The two sides look forward to the identification of
specific opportunities for cooperative and collaborative projects in
advanced defence technologies and systems, within one year. Such
opportunities will be pursued
by both sides in accordance with their national policies and procedures, in
a manner that would reflect the full potential of the relationship.
- The U.S. continues to fully support India‘s full membership in the four
international export control regimes, which would further facilitate
An Investigation into Indian Trade Policies
A Federal Agency of United States in last week of August 2013
launched an investigation into the trade policies of India. The federal agency
has alleged that the Indian trade policies has discriminated the American trade
and investment sector.
A joint Senate Committee on Finance and the House Committee
on ways and means requested for the investigation named Trade, Investment and
Industrial Policies in India: Effects on the U.S. Economy. An investigation
report on recent policies and measures in India that affects the U.S. exports
and investment would be presented by the United States International Trade
Commission (USITC). The USITC will also evaluate the effects of such barriers on
U.S. firms and the economy. While examining the Indian policies, the USITC will
also produce details of restrictive trade and investment policies maintained or
adopted by India in recent past to figure out the sectors that have been
affected the most out of the policies. It will also provide the case studies of
US firms that have seen the impact of Indian policies in forms of restrictions.
The Process of Investigation
A sample of US firms would be surveyed by the USITC for
measurement of the sensitivity if Indian policies and its impact on US firms.
The results of the survey would be based on the quantitative analysis trade
policy effects, investment and US economy.
INDIA & RUSSIA
Russia and Government of India on 21 September 2013 agreed on
collaboration to jointly develop and manufacture civilian aircraft and
helicopters for especially for emergency relief and medical purposes. Russian
Government also offered to set up manufacturing facilities in the India for
joint production of defence hardware. Russia and Government of India also
reached an understanding for setting up two major projects in a joint
venture for producing civil choppers and aircraft.
This was decided during the 7th India Russian Forum on Trade
and Investment meet between Union Commerce and Industry Minister Anand Sharma
and Deputy Prime Minister of Russia Dmitry Rogozin and Russia’s Industry and
Trade Minister Denis Manturov in St. Petersburg. Anand Sharma and Dmitry Rogozin
agreed on collaboration to jointly develop and manufacture civilian aircraft and
helicopters for especially for emergency relief and medical purposes.
And both Russia and India stated that these two aircraft projects should not
be seen only for domestic use but will also explore the possibilities of third
For production of Civilian Aircrafts
One of the projects under collaboration for civilian
aircrafts or helicopters envisages the setting up of the joint venture for
manufacturing in Indian factories different modifications of light
helicopters Ka-226T for medical, rescue and other purposes. The
Russiangovernment also mooted a new proposal involving IL-112V.
For Setting up of manufacturing facility
India and Russia have also developed a framework for tracking
key priority projects at the Ministerial level. The sectors covered under this
joint understanding include automobile, industrial and roadbuilding machinery,
chemical and petrochemical industry, civil aircraft construction, fertilizers,
pharmaceuticals, energy, diamonds, IT, automobiles, and agro and processed
7th India-Russia Trade Investment Forum held in St. Petersburg
7th India Russia meeting on trade and investment was held at
St. Petersburg , Russia on 20 September 2013. A high level delegation of 120
Indian business leaders led by Union Minister of Commerce and Industry
participated in the meeting. It discussed various business opportunities with
their Russian counterparts. The special focus was on Pharmaceutical and Medical
Industry, Tourism and Medical Tourism and Trade in goods, services and
At the forum Pharmaceutical sector received major attention
as India is looking at the opportunities that the 2020 Pharma programme offers.
India sought regulatory simplifications for Indian companies who not only want
to have market access but also look for establishing manufacturing base in
Russia. In recently concluded 19th India Russia Working Group on Trade and
Economic Cooperation (IRWGTEC) meeting in Moscow Indian side had conveyed the
details of barriers in the trade of pharmaceutical products to Russia. These
barriers included substantial delay in all approvals and dossier evaluation due
to insufficient number of competent specialists, huge number of backlog of
dossiers accumulated by the Russian health authorities, lack of information
about stage of approval etc. All this leads to avoidable delay in supplies,
commencement of production, and launch of new product in the market.
Fertilizer sector has also attracted Indian interest for
setting up manufacturing in Russia. Production of Phosphate and Potash in Russia
by way of JV with Indian Fertilizer entities was discussed. There exist
complimentarity between availability of fertilizer resources in Russia and
growing fertilizer demand in India which should result in strategic partnership
in this field. AKRON and ORGSINTEZ, the two Russian companies are in discussion
with IFFCO as they have Potassic and Phosphatic resources. Both side discussed
the need to support the proposal of M/s AKRON of Russia for setting up of
facilities for production of Phosphate and Potash in Russia by way of JV with
Indian Fertilizer entities. Furthermore, In January 2013, Secretary (Fertilizer)
met the Russian Ministry of Industry and Trade and Russian fertilizer companies
to explain new investment policy changes in urea production in India and invite
them to invest in India under the new policy. A non-paper was also shared with
the Russian side. During this visit Shri Sharma was informed of Russian
companies expressing interest in the proposition and companies on both sides are
expected to identify opportunities for investment in urea production in India.
The Forum in its 7th edition with specific purpose of
‘encouraging discussion among the businesses of the two sides to increase
economic engagement for common benefits’ concluded that fresh initiatives need
to be taken to further exploit complementarities in other sectors such as
fertilizers, industrial machinery, diamonds etc. Other new areas such as
automobiles, electrical equipment, chemicals, mining and processed foods need to
be explored as they have immense potential in both countries. Another area
identified for focused approach between India and Russia is IT Services. This
conclusion is an endorsement of the sector that have been identified in Joint
Understanding & Intention on Possible Plans and Priority Investment Projects for
Enhancing Indo-Russian Economic & Investment Cooperation Under which a total of
15 high value, high tech projects have been
selected for special attention for ministerial supervision.
Some of the projects are as following
- The establishment of India- Russian Joint venture with Hindustan
Aeronautics Ltd. (HAL) as joint centre of development the helicopters.
- Production of Nitrogen Tetra Oxide for Space programme
- Possible future cooperation between MMTC and ALROSA for long term supply
of rough diamonds
- ONGC Videsh Ltd. (OVL)’s prospects for further hydrocarbon collaboration
with Russian energy companies
- Joint project of Ranbaxy Laboratories Limited (RLL) and Government of
- Participation of Russian companies in urea production in India under new
- Plant construction for manufacturing butyl rubber with capacity of
100000 tons per year at the production site of Reliance Industriesin