(Current Affairs) India and The World | October: 2013

India & The World

India and China

India and China focussed on additional confidence building measures in the two-day talks between the representatives of the two countries that ended in New Delhi on 24 July 2013. The two nations reviewed the recent developments in the border areas to enhance peace and tranquility along the Line of Actual Control. India and China discussed additional confidence building measures between them. They consulted on measures to improve the functioning of the working mechanism and to make it more efficient. Finally the two delegations further discussed the possibility of introducing an additional route for the Kailash Mansarovar yatra. The meeting on working mechanism for consultation and coordination on India-China border affairs was led by Joint Secretary in the Ministry of External Affairs Gautam Bambawale and senior officials of the Defence and Home Ministries from the Indian side. The Chinese side was represented by a composite delegation of its officials. The next meeting will be held in China at a mutually convenient date and time.

According to the data released by Chinese Customs, the India-China trade deficit increased by 34 percent to reach 12 billion US dollars in the first five months of the year, presenting a bleak picture for Indian exports as bilateral trade continued to decline, denting hopes of achieving a trade volume of 100 billion US dollars by 2015. The India-China bilateral trade touched 26.5 billion US dollars till May 2013. The trade deficit for India has widened year-on-year to 12 billion US dollars, up by 34 percent. The trade volume was lowered by over two billion US dollars compared to 2012. The trade deficit touched about 30 billion US dollars in 2012, causing concerns in India. While the Chinese exports registered marginal increase the bilateral trade numbers are falling. Exports have declined substantially while imports have risen marginally. Much to the disquiet of India, its main items of exports like cotton, iron ore and copper have continued their downward slide. Iron ore declined sharply by 76 percent to 595.42 million US dollars. Cotton and copper declined year-on-year by 40 percent to 1.39 billion US dollars and 24 percent to 688.53 million US dollars respectively. Indias overall share in Chinese exports has dropped to under 1 percent from 1.33 percent, the data showed. Cotton yarn and diamonds are the other two exports that rounded off the top five. Cotton yarn is the sole bright spot showing a jump of 115 percent to reach a value of 740 million US dollars. Diamonds increased at a modest 14 percent to record 562.1 million US dollars. The Chinese exports to India maintained an even keel, rising by 2.7 percent year-onyear.

The India-China trade deficit increased by 34 percent to reach 12 billion US dollars in the first five months of the year, presenting a bleak picture for Indian exports as bilateral trade continued to decline, denting hopes of achieving a trade volume of 100 billion US dollars by 2015.

India and Afghanistan

India and Afghanistan on 30 July 2013 signed memoranda of understanding (MoUs) in Kabul for implementing 60 projects in ten Afghan provinces under the Small Development Projects (SDP) scheme. The MoUs signed by Afghan Minister of Economy Abdul Hadi Arghandiwal and Indian Ambassador Amar Sinha in Kabul are related to the third phase of the SDP scheme and will be completed in the next four years. 100 million dollar SDP scheme was announced during Prime Ministers visit to Afghanistan in May 2011. The first two phases of the scheme with a total outlay of 20 million dollars are nearing completion. The scheme has been designed by Indian government to address the developmental needs of mainly rural communities in far-flung areas of Afghanistan.

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