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Amid dollops of culture, Modi, Xi hold extremely productive talks

May 22, 2015

With China’s rich cultural heritage and the ancient links of Buddhism forming a grand backdrop, Prime Minister Narendra Modi on May 14 held “extremely productive” summit-level talks with Chinese President Xi Jinping during which the border issue, the widening trade imbalance and “strengthening trust” were high on the agenda. Modi, who arrived in Beijing late on May 14 on the second leg of his visit, tweeted his “special thanks” to Xi for “extremely productive meeting” earlier in the day in Xi’an. Modi arrived in the morning in the historic city of Xi’an, the capital of Shaanxi province and the hometown of President Xi, and spent a busy day, absorbing the ancient civilisational grandeur of Xi’an at the Terracotta Warriors Museum, the Da Xing Shan Buddhist temple and the Wild Goose Pagoda. President Xi, who was welcomed by Modi in Ahmedabad and treated to a colourful walk along the Sabarmati river front during his India visit last September, in a reciprocal gesture, welcomed Modi in his hometown Xi’an. The over 90-minute talks between the two Asian leaders, held at the Shaanxi Guest House, were “very substantive and the atmosphere was very comfortable”, said Foreign Secretary S. Jaishankar, briefing newspersons. He said both the leaders “built on the chemistry” that had started with Xi’s India visit last year. Modi, attired in a black bandhgala suit, spoke in Hindi, while Xi spoke in Chinese. The Chinese president recalled his visit to Ahmedabad and said: “You received me very warmly in your hometown. I am very glad to receive you in my hometown.” “That left me with deep and good impression,” Xi said. The Chinese president said it was the first time he was meeting a foreign leader outside Beijing. Jaishankar said the two leaders spoke of the need to strengthen cooperation on countering terrorism and on “strengthening trust and increasing convergences”. The niggling border issue, maintaining peace and tranquillity on the border was also discussed. India’s concerns over China going ahead with an economic corridor project with Pakistan that cuts through Pakistanadministered Kashmir is understood to have been raised. The widening trade deficit, around $37 billion, and the investment climate came up, as well as connectivity issues, the foreign secretary said. Jaishankar said the two leaders also discussed sharing information on trans-border rivers. “The talks were wide ranging, and regional, global issues came up,” he said. The Chinese president spoke of the “miracle of Gujarat” under Modi and said the prime minister was “trying to do it at the national level”. “Terrorism naturally came up,” Jaishankar said, and added that there was reference to the terror attack in Kabul and Karachi. The two leaders discussed the Nepal quake, UNSC reforms and India’s membership of the Nuclear Suppliers Group. Later, Xi accompanied Modi to the Wild Goose Pagoda, and showed him around some of the Buddhist relics, in the way that Modi had personally taken him around the Sabarmati Ashram of Mahatma Gandhi. The two leaders chatted together, including for some time in the garden of the compound. Modi presented a sapling of the Mahabodhi tree to the temple, which was built in 652 A.D. during the Tang dynasty. Modi was accorded a traditional Tang dynasty welcome ceremony at the South City Wall.Later, he attended a banquet hosted by Xi. In a grand finale, Modi and Xi attended a spectacular cultural performance at the Pot City courtyard which reflected the close Buddhist links of the two nations. Modi presented Xi a replica of a casket containing the sacred relics of Lord Buddha. The casket was excavated from Dev-ni-Mori, near Vadnagar in Gujarat in 1957. He also presented Xi a stone statue of Buddha. In the morning, Modi visited the Terracotta Warriors Museum, a UN World Heritage site that houses neat rows of terracotta sculptures, depicting the armies of Qin Shi Huang, the first emperor of China. The museum has a collection of over 8,000 life-size clay warriors. At the Da Xing Shan temple, Modi offered prayers as orange-robed monks chanted prayers. The temple was originally built in the Jin Dynasty and was reconstructed in 582 A.D. Late in the evening, Modi left for Beijing. “Reached Beijing after a memorable day in Xi’an. My gratitude to the people of Xi’an for their warmth & hospitality,” he tweeted. He will hold talks with his Chinese counterpart Li Keqiang, and several agreements are set to be inked on Friday. On Saturday, he goes to Shanghai.

India, China ink 24 agreements

India and China on May 15 inked 24 agreements after talks between Prime Minister Narendra Modi and Premier Li Keqiang in Beijing. These are:

- Protocol on the setting up of consulates-general at Chengdu and Chennai, and extension of the consulate general of India in Guangzhou to include Jiangxi province.

- MoU in the field of vocational education and skill development;

-An action plan on cooperation in setting up of the Mahatma Gandhi National Institute for Skill Development and Entrepreneurship in Ahmedabad/Gandhinagar in Gujarat;

- MoU on consultative mechanism for cooperation in trade negotiations;

- MoU on cooperation between the ministry of external affairs of India and international department of the central committee of the Communist Party of China;

- Action plan to enhance cooperation in the railway sector (2015-16).

- MoU on education exchange programme.

- MoU on the cooperation in the mining and minerals sector. On Space Cooperation Outline (2015-2020).

-Protocol on health and safety regulations on importing Indian rapeseed mealMoU between Doordarshan and China Central Television on cooperation in the field of broadcasting.

- Agreement on cooperation in the field of tourism.

- MoU on establishing India-China think-tanks forum.

- MoU between India’s Niti Aayog and the Development Research Centre, State Council of China.

- MoU between India’s ministry of earth sciences and the China Earthquake Administration for cooperation in earthquake science and earthquake engineering.

-MoU on cooperation in the field of ocean science, ocean technology, climate change, polar science and cryosphere.

-MoU on scientific cooperation between Geological Survey of India, ministry of mines of India and the China Geological Survey, ministry of land and resources of China in geo-science.

- MoU between the ministry of external affairs of India and ministry of foreign affairs of China on establishment of states/provincial leaders’ forum.

- Agreement on the establishment of sister-state/province relations between Karnataka and provincial government of Sichuan of China.

-Agreement on establishment of sister-city relations between Chennai and Chongqing of China.

- Agreement on establishment of sister-city relations between Hyderabad and Qingdao of China.

-Agreement on establishment of sister-city relations between Aurangabad and Dunhuang of China.

-MoU between the Indian Council for Cultural Relations and Fudan University on the establishment of a centre for Gandhian and Indian studies.

-MoU between Indian Council for Cultural Relations and Yunnan Minzu University on the establishment of a yoga college.

Modi stresses Buddhism, population; says India, China joint force for world

Prime Minister Narendra Modi on May 16 stressed the shared legacy of Buddhism between India and China and their commonalities, including their large population, and said the two countries together could not only solve their problems but also be a force of good for the entire world. Modi, who wound up his three-day visit to China by attending many functions in Shanghai, devoted the morning to business events. He met the CEOs of top Chinese companies, including Jack Ma of Alibaba and top smartphone maker Xiaomi’s head Lin Bin and invited them to ‘make in India’. He assured them of the ease of doing business. The Chinese CEOs reacted positively to the invite to invest in India. Addressing the India-China Business Forum, that also saw 21 business agreements worth $22 billion being signed between businesspersons of both countries, Modi stressed the unifying factor of Buddhism among the Asian nations. “The serenity of Buddhism in Asian countries is the seed of their success. I strongly believe that this century belongs to Asia. And Buddhism will be a further unifying and catalysing force among the Asian countries,” said Modi. He also stressed the shared knowledge base between India and China, flowing through centuries, like the discovery of zero and the planets by ancient Indian mathematicians and astronomers, to say that both countries need to forge their strengths. “We have a lot in common and we can do a lot together. As we helped each other growing spiritually, we have to help each other growing economically. I have a lot of hope from the relationship which I and President Xi are trying to

build,” he said at the forum. Later, in his address to the Indian diaspora at the Expo grounds, Modi said the friendship between the two countries should not be weighed in terms of loss or gain, but as a combined strength. “India and China together have one-third of the population of the world. On one side is the entire world, and on the other the two of us. Have we ever recognised this immense strength? “Times have changed and thus India and China can together not only find solutions to their own problems but can also help rid the world (mukti dila saktey hain) of many problems,” he said in Hindi. Modi said his addresses to the two universities - at Fudan, where he inaugurated a Centre for Gandhian and Indian Studies Centre, and at Tsinghua University in Beijing on Friday - were among the most important factors of his trip, as it was recognition of India as a place of not just future investment but as a place of knowledge. At Fudan University, Modi said Gandhian philosophy can help the world in the fight against terrorism and deal with climate change. He said both India and China through the centuries have taken huge efforts in the pursuit of knowledge. “The relations based on the quest for knowledge has beneficial effects for centuries,” he said. He also thanked President Xi Jinping for breaking from tradition to welcome him in Xi’an, the capital of Shaanxi province and his hometown, on Thursday. He said their close friendship goes beyond the friendship of the leaders of two nations, as “plus one”. Modi, who happened to be in Shanghai on the day the BJP swept to power in the Indian general elections a year ago, referred to it in his address to the diaspora and said he would live up to the responsibility that the mandate had given him. He wound up his China visit and left for Mongolia, in the first visit ever by an Indian prime minister. In China, he visited Xi’an on Thursday, where he held summit talks with President Xi during which the border issue and trade imbalance among other things came up. In Beijing on May 15, Modi held talks with Prime Minister Li Keqiang and the two sides also inked 24 agreements.

India, Mongolia stress ‘bonds of hearts and minds’

India and Mongolia forged a strategic partnership, building on the “bonds of hearts and minds” over the “barriers of distance”, as Narendra Modi on May 17 became the first Indian prime minister to visit the landlocked northeast Asian nation which has declared India as its “third neighbour” as well as “spiritual neighbour”. The two countries also inked 13 agreements, including in the sphere of air services, cyber security and transfer of sentenced prisoners. Modi, speaking at a dinner reception at the end of a packed schedule marked by his

striking up a personal rapport with the Mongolian leadership, said that “in less than 24 hours, we have experienced true friendship”. “The importance of a journey is not measured by the distance covered, but by the destination reached. The visit may be short but the outcomes are substantive and significant. “In the course of one day, we have imparted our ancient relations new strength and momentum,” Modi said. Modi, who held talks with President Tsakhiagiin Elbegdorj and Prime Minister Chimed Saikhanbileg in the State Palace here, announced a $1 billion Line of Credit to Mongolia for its infrastructure projects. “Mongolia is an integral part of India’s Act East Policy. The destinies of India and Mongolia are closely linked with the future of the Asia-Pacific Region.” Modi said both sides have decided to upgrade their Comprehensive Partnership to the level of ‘Strategic Partnership’. “We also agreed to renew our Treaty of Friendly Relations and Cooperation.” He said India and Mongolia can boost cooperation in the civil nuclear field as Mongolia was rich in uranium and mineral resources. Both countries inked a civilian nuclear deal for uranium supplies in September 2009, but are yet to complete its internal processes for initiating supplies to India. The joint statement said a joint working group has been asked “to explore opportunities for future collaborative actions in the spirit of mutual benefit”. Mongolia, which is sandwiched between China and Russia but shares frosty relations with both, has evolved the concept of “third neighbour”. Saikhanbileg, in his media statement after the talks at the State Palace in the morning, said Mongolia “firmly regards India as our third neighbour and our spiritual neighbour”. At the dinner reception, he said that “regardless of the geographical distance that separates us, we have been always bound close together”. Modi spoke in a similar vein at the State Palace, saying that “Indians and Mongolians are telling the world that the bonds of hearts and minds have the strength to overcome the barriers of distances”. Modi thanked Mongolia for its “strong support” for India’s bid for permanent membership of the United Nations Security Council. In his address at the Mongolian parliament, or Great Hural, which was opened on Sunday in a special gesture of honour for the visit, Modi said Mongolia terming India as its spiritual neighbour was a high form of honour. There were “no bonds more sacred than this. We in India are honoured that you think of us this way”. In the field of defence, both sides agreed to continue to work towards further intensifying bilateral defence and security cooperation through exchanges of high and mid-level visits, regular consultations, military personnel exchanges and capacity building among other things. The MoUs signed included those for setting up a Cyber Security Training Centre in Mongolia’s defence ministry; the National Security Councils of both countries are to hold consultations on security issues, counter-terrorism, intelligence cooperation and exchange; enhancing cooperation between their border guarding forces in capacity building, conduct of joint exercises, surveillance and policing. Modi also handed over Bhabhatron, a telecobalt machine developed by BARC for cancer treatment, at Mongolia’s National Cancer Centre here. He laid the foundation stone of the Atal Bihari Vajpayee Centre for Excellence in Information Technology and Communication and Outsourcing. In the morning, Modi visited the Gandan Monastery and presented a sapling of the revered Mahabodhi tree to the monastery’s head abbot Hamba Lama. Modi stressed the shared legacy of Buddhism in his speeches. Modi and the Mongolian prime minister also bonded during the Mini Naadam games. Modi was presented a morin khuur, a traditional stringed instrument, by President Tsakhiagiin Elbegdorj, while Saikhanbileg presented him with a horse, named Kanthaka, after the favourite horse of Prince Siddhartha, who later became Gautama Buddha. Modi gifted Elbegdorj a specially commissioned reproduction of a rare 13th century manuscript on the history of Mongols. The prime minister also took selfies with President Elbegdorj, an event no foreign tour is complete without. He also addressed a community reception and yoga event at the Buyant Ukhaa Stadium, organised by the Art of Living foundation of spiritual guru Ravi Shankar. Modi is on a three-nation tour to China, Mongolia and South Korea. He flies to Seoul on Monday.

World’s perception of India has changed during the last one year: Modi in Seoul

The world’s perception of India has changed in the past one year, Prime Minister Narendra Modi said in his address to the Indian community in Seoul. “In the last one year the world’s perception about India has changed,” Modi said amid loud chants of “Modi, Modi” when he interacted with the Indian community in Seoul. “Today people are excited to come to India. This is the mood that has changed. And after all, the people make the Nation,” he tweeted. “India is being seen as the fastest growing economy of the world,” he said. Modi arrived in Seoul on May 18 morning, in the last leg of his three-nation visit that also took him to China and Mongolia. Earlier, Modi said it was “wonderful being in Seoul” as he arrived to an enthusiastic welcome from the Indian community. “Wonderful being in Seoul. My gratitude to the Indian community here for the very warm welcome,” the prime minister tweeted. Indian community members in large number, waving small tri-colour flags, were at the ROK Airbase to welcome the prime minister, who arrived from Ulan Bator. “Immense enthusiasm as PM @narendramodi reaches South Korea,” the Prime Minister’s Office tweeted with a picture of Indian diaspora members enthusiastically greeting the prime minister. “Indian community welcomes PM @narendramodi to South Korea,” the PMO tweeted. “Annyeonghaseyo to the land of the morning calm! PM @narendramodi arrives in Seoul,” external affairs ministry spokesperson Vikas Swarup tweeted. Modi arrived in South Korea from Mongolia on a two-day visit. After his arrival in Seoul, Modi went to lay a wreath at the Seoul National Cemetery. He is set to attend a reception by the Indian community, during which 1,500 members will be present. Later, he will be accorded an official welcome after which he will hold talks with President Park Geun-hye. A number of agreements are to be inked. Both leaders will make press statements. President Park will host a banquet in honour of the Indian prime minister in the evening.

Google to build largest campus outside US in Hyderabad

Global Internet services company Google will build its largest campus outside the US in Hyderabad with an investment of Rs.1,000 crore, announced Telanagana Information Technology Minister K. Tarakarama Rao on May 12. The minister, who is on a visit to the US, said the state government has signed a memorandum of understanding (MoU) with Google, which will develop about two million square feet campus, the first in Asia. The global search engine giant will build the facility on 7.2 acres in Gachibowli, the IT corridor in Hyderabad, said a statement released by the state government on May 12 evening. It will be one of the largest facilities globally and Google’s first own campus in India. “Excited to announce that Google & Government of Telangana have inked an MoU to build their largest campus (outside US) in Hyderabad,” Tarakarama Rao tweeted earlier. “First campus in Asia. 2 million sq ft space would be built. Investment of Rs.1,000 crore and in four years employee size to double from 6,500 to 13,000,” said the minister, who is son of Chief Minister K. Chandrasekhar Rao. Google’s vice president, real estate & workplace, David Radcliffe, and Telangana IT Secretary Jayesh Ranjan signed the MoU on Monday at Google headquarters in Mountain View, California. According to Radcliffe, about 12 months will be spent on planning and the construction work is supposed to start around summer of 2016. “The construction should take about two and a half years and we could have a facility as soon as early 2019,” the statement quoted him as saying. The minister and Ranjan also had a meeting with Bram Bout, director of Google Education. The minister wanted Google to associate with the Telangana government to support the ambitious Digital Telangana program, particularly the component that intends to promote digital literacy amongst school children. Google was urged to utilize the CSR component for channeling the hardware infrastructure, content and training to government schools across the state. The proposal resonates with Google’s ongoing efforts in the Chrome Notebook education model, which has already been piloted in four schools in Warangal district six months ago.

Japanese keen on $1.6 tn highways funding: Nitin Gadkari

India is firming up plans for a $1.6-trillion financing institution that will fund highway projects across the country with a 26- percent stake held by Japanese companies, to achieve a target of 30 km of road-laying per day, Nitin Gadkari, one of the most important ministers in the government of Prime Minister Narendra Modi, has said. “Our talks are very much on. They are in a very advanced stage. We are trying to attract foreign funds and they seem very much interested. They see value and good prospects in investing in the sector,” Road Transport and Highways Minister Gadkari, who also looks after shipping, told IANS in an exclusive interview as he reviewed his ministry’s one year in office. This funding arm, he said, will also secure all the green and regulatory clearances. “We are also in touch with pension, endowment, insurance and private funds to attract investments. We have been holding talks with potential investors across the globe. We have also been telling them that regulatory norms have now changed. The prospects are far better,” he said. “We want to ensure that each and every highway project in our country -- the ongoing ones and the future ones -- are on track and complete within the time assigned,” the minister said and pointed out that all the 62 stalled highway projects will be re-started by end-June. Gadkari said when he took charge of the ministry last year, there were 240 projects in all under the public-private partnership (PPP) model, out of which 186 were stuck. Out of the remaining, 44 have now been terminated, 80 have been restarted and the remaining will re-commence by June. As per various estimates, India currently has the world’s second-largest road network, totalling to some 4.7 million km, transporting over 60 percent of all goods in the country and nearly 85 percent of passenger traffic. But the government itself says half of these are in poor shape. This apart, highways account for only two percent of the total roads network but transport 40 percent of goods. Speaking to IANS at his residence, a relaxed Gadkari, who till a few years ago headed the ruling Bharatiya Janata Party (BJP), brushed aside criticisms that the targets that he had set for road construction in India were too ambitious. His predecessor in the previous government had also failed in meeting the targets. “We were constructing around 12 km of roads per day as of March. Our target is to take it up to 14 km by the end of this month. Ultimately, the target is 30 km per month. This is what we will certainly achieve by May next year,” the minister said. “Our plan is to award around 15,000 km of roads during the current fiscal,” he said, while pointing out that a major hurdle, which was arrangement of funding, has been removed recently by the cabinet, in a meeting presided over by Prime Minister Narendra Modi. He was referring to what has been called a project-exit policy for highway developers, while also authorising the state run National Highways Authority of India (NHAI) to intervene in languishing projects that are suffering from lack of funds. Ghadkari told IANS it was felt that PPP projects in the roads sector were not able to attract bids in the desired level and one reason was lack of availability of equity in the market for bidders who qualify. The exit policy permits them to divest 100 percent equity two years after completion of projects, while also investing the same amount in their other stalled projects. This, the minister said, can immediately unlock around Rs.4,500 crore and support 1,500 km of highways.

South Korea offers $10-bn fund for Modi projects

As Prime Minister Narendra Modi commenced his two-day visit to Seoul on May 18, South Korea has offered to set up a $10-billion fund to support several of his ambitious projects, from bullet trains to smart cities, the country’s envoy to India Joon-gyu Lee has said. “My country is offering India a financial package amounting to a total of $10 billion. This will comprise an economic development cooperation fund of $1 billion and export credits of another $9 billion,” Lee told IANS in an exclusive interview. “This fund will be used to support several of Prime Minister Modi’s initiatives on infrastructure development, including smart cities project, railways, power generation, transmission and also other sectors that can be agreed upon at a later stage,” Lee added. According to him, South Korean companies are especially interested in developing India’s railroad network, ports and other modern transportation mediums. “Discussions with the relevant ministries and companies are ongoing -- like in upgrading the existing railways,” the ambassador elaborated. “South Korea has the experience in all aspects of railway development, from modernisation of the existing network to complete turnkey for high-speed ‘bullet trains’. My country stands ready to work with India to develop its transportation infrastructure.” As he landed in Seoul on Monday, infrastructure, apart from the hard-sell of his “Make in India” campaign, in the typical Modi style, is set to be the cornerstone of the India premier’s visit to this northeast asian nation with which India enjoys bilateral trade worth $20 billion annually. Modi has, many a time, evinced interest in South Korea’s capability in ship building and the need to boost the Indian vessel- manufacturing operations. Seoul is keen to pursue ties in this area as well. “We are working hard on this issue. We appreciate very much the prime minister’s acknowledgement for our ship-building industry. We are obliged, and privileged, to respond to India’s call for collaborations seriously,” the ambassador said in the free-wheeling talk with IANS. According to him, the prime minister’s visit to the biggest shipyard in South Korea was showed how important this industry was to both nations, “I am sure our two government will find a nice way to explore the big potential of cooperation in ship-building.” On the interest shown by South Korean companies to expand manufacturing operations in India, the envoy said: “You may expect larger number of Korean companies and more investments. Decisions will be made by companies themselves, but I can share the bright prospects,” he said. “Our companies have been doing well in India. This has led Korean company to consider further expansion of their manufacturing and other operations in India. I hope the trend continues. I’m sure Korea can become a key partner in ‘Make in India’ initiative,” said Lee. South Korean companies, especially their large global conglomerates, called chaebols in their language, have become household names in India, notably Samsung, LG and Hyundai, and earlier Daewoo. Asked about the trade balance being heavily skewed in South Korea’s favour, at $7.5 billion per annum, the ambassador said the government’s of the both have held talks to allow greater market access to Indian pharma and services sectors to prune the imbalance. “There is no doubt both sides should gain from trade for the relationship to grow. At the same, I agree that continued trade imbalance is not good. But please also understand, a significant volume of Korean exports to India is intermediate goods, like components, which are assembled in India.” He expected the issue to be discussed by the leaderships of the two countries during the prime Minister’s visit. “Korea will do it’s best to get rid of any obstacles, if any, for fine Indian goods to be exported to our country,” the ambassador said.

Sweden keen to build smart cities in India via PPP mode

Sweden is keen on partnering with Indian companies to build ‘smart cities’ through the public private partnership (PPP) mode in states like Karnataka, Telangana and Maharashtra, a senior Swedish official said. Early signing of a pending memorandum of understanding (MOU) on urban development framework between the two countries is expected to facilitate for collaboration, she said. “Rather than adopting cities in India, we will work on actual PPP model, where in, we will bring in Swedish expertise and world class state-of-the-art knowledge and investment, said Anna Liberg, Trade Commissioner to India, Business Sweden India and South Asia. Sweden, which has expertise in urban planning, power, sustainable transport and waste management, sees business opportunities with Indian partners in states like Karnataka, Maharasthra, Telangana and Uttar Pradesh, she told PTI. “There are 150 Swedish companies in India and the number is growing. A considerable part of them are in the field of urban development under the umbrella of smart cities. We are very strong in that,” Liberg said. The partnership with Indian companies on smart solutions would be on a commercial basis, she said, adding expertise of Swedish companies on smart solutions would be showcased at the forthcoming Smart City Expo on May 20-22 in New Delhi. Liberg expressed hope that the pending MoU on sustainable urban development framework would be signed during Indian President Pranab Mukherjee’s visit to Stockholm on June 1-2. The MoU would entail urban planning, energy, waste management — all smart solutions required in an urban context, Micael Hagman, Counsellor – Energy, Environment and Climate Change. Stating that cities cannot be turned smart over night, Hagman said that cities in Sweden way back in 1900s were heavily polluted. It took 50-60 years to clean them through use of laws and new technologies, among others. “We started cleaning cities in Sweden when the country was not rich. Now, everyone looks at it and ask how we did it. It did not occur over night. It has taken long tiresome process,” he said. Hagman further said, “The initiative is important. The leadership of a politician is important. It takes 7 or 15 years, it does not matter. It is the direction that matters.” Indian government plans to develop 100 smart cities by 2022. In the Budget, Finance Ministry had allocated Rs 7,060 crore for developing these smart cities

India’s goods exports shrink, gold imports nearly double

In a worrying start to this fiscal, India’s merchandise exports declined sharply by 14 percent in April and stood at $22.05 billion due mainly to the overall conditions in the global market, while gold imports shot up by 85 percent. The exports contracted from $25.63 billion during April 2014. According to data on exports and imports released by the ministry of commerce and industry on May 15, the trade deficit for April this year stood at $11 billion against $10.08 billion during the like month of the previous year. The trade deficit, in fact, widened despite a major 42.65-percent drop in oil imports during April 2015 and was valued at $7.44 billion against $12.98 billion in the corresponding month of the previous year. Non-oil imports, including gold, were estimated at $25.60 billion, which was 12.58 percent higher than the $22.74 billion in April 2014. Imports of gold nearly doubled and were over 85 percent higher at $19.65 billion, against $10.596 billion. The overall imports during April were down by 7.48 percent at $33.04 billion from $35.72 billion. Commodity-wise, high export growth was witnessed in tobacco (24.28 percent), spices (19.60 percent), ceramic products (15.67 percent), carpets (14.17 percent), handicrafts (13.46 percent), cashew (10.71 percent), drug and pharmaceutical (9.73 percent) and cereal preparations (8.08 percent). Segment-wise, high import growth was reported in fertilisers (70.70 percent), transport equipment (69.44 percent), pulses (42.45 percent), electronic goods (30.01 percent), artificial resins and plastic materials (19.35 percent), fruits and vegetables (17.03 percent), iron and steel (16.01 percent) and electronic and non-electronic machinery (10.11 percent). Another set of data independently released by the Reserve Bank of India (RBI) showed that services export for March was lower by 1.88 percent and stood at $14.04 billion from $14.31 billion earned during the corresponding month of last year. However, services imports during March fell by 7.42 percent and stood at $7.86 billion from $8.49 billion in the like month of 2014. The Federation of Indian Export Organisations (FIEO) said that the sharp decline in petroleum exports coupled-with negative growth in some key export sectors was the main reason behind the export decline. Petroleum exports in the month under review declined by 46.5 percent. The sector used to contribute about 20 percent of the country’s total exports. “Negative growth in exports is continuing since December, 2014 though the decline has come down from March. The prime reason continues to be softening of crude, metal and commodity prices,” S.C. Ralhan, president, FIEO was quoted in a statement. “Decline in exports of rice, marine products, meat, dairy and poultry products, leather products are of equal consequences as these sectors have shown great promise in the past. As per Ralhan added that exports to countries dependent on oil, metal and commodities may have taken a hit as they reduced their appetite for imports with tighter capital control. Ralhan added that the interest subvention scheme may be re-introduced immediately and liquidity crunch of the exporters may be addressed with timely release of the exports benefits.

One bn tonne coal target needs $20-25 bn investment: Minister Goyal

Union coal and Renewable Energy Minister Piyush Goyal on May 15 said an investment of $20 to 25 billion is needed to achieve the coal production target of one billion tonne by 2019.

“It (the coal target) could entail an investment anywhere between $ 20-25 billion in technology, equipment, in upgrading facilities, opening new mines - that is the level of investment as a ballpark figure,” he said. Goyal said, at the current stage, the centre has identified the “big picture” “On that format now, we shall now be inviting detailed technological innovative plans to be most cost-effective and bring in the highest standards of safety and maintain high quality of coal,” he said. To achieve the target, Coal India Ltd (CIL) will be opening 70-100 new mines besides stepping up production from its existing mines while allotments will also be made for the private players. “The mines which CIL will be opening would be in the region between 70-100 mines and my own sense is that the state governments will be allotted 39 mines, and maybe another 70-80 mines in the private sector,” he said. He said output from the existing mines wherever possible will be stepped up and mining plans in some of the existing mines will be expanded by 4-5 times from the current capacity. Also, some of the unproductive mines will be shut down. “There are a portion of mines which will stop operating as they have been mined out totally but that will be replaced by the new mines. In the evacuation infrastructure, an incremental growth in the first 2-3 years is predicted followed by a quantum jump in the last two years,” he said. “I see CIL as the world’s most valuable mining company five years from now,” said Goyal.

Indian retail market to touch $2.1 trillion by 2025: Study

Increasing affluence, changing lifestyle and attitude towards spending by young Indians is pushing the retail market, which is expected to grow from about $550 billion in 2015 to $2.1 trillion by 2025, an almost fourfold growth over a decade, a study said on May 15. “India’s young population, increasing affluence, changing lifestyle and attitude towards spending and increasing availability in the smallest of the towns, is spiralling consumption and driving the retail market,” said the retail report done by Confederation of Indian Industry along with Wazir Advisors. “The Indian retail market is thus expected to grow from about $550 billion in 2015 to an estimated $2,100 billion by 2025, an almost four fold growth over a decade,” it added. Within the same period, organised retail is expected to grow seven fold and online retail, a mind boggling 26-fold. The main drivers for the retail market would be the demographic dividend, increasing incomes fuelling aspirations and urbanisation and urbanisation. There are an estimated 12-14 million retailers, making India a country with one of the highest retail densities. The sector is expected to grow at a compound annual growth rate of 14 percent over the next 10 years and will remain one of the top growth markets globally. “However, given their small bases, the market will still be dominated by the traditional unorganized retail which is expected to grow at a healthy 13 percent per annum, and continue leading the market with 79-80 percent share, even by 2025,” the study projected. It stated that the fear of traditional unorganised retailers that modern organised retailers will wipe them out has settled. The study further said: “The current fretfulness that organised retailers have about online players will subside soon as the online sector matures and grows past its initial discounting strategies.” Though currently the level of collaboration between unorganized, organised and online retail channels is limited as the market reshuffles and all participants are trying to find their own ground, the scenario is going to dramatically change going forward, the report predicted. “Each channel will define its own unique strengths and value proposition and will learn to coexist and grow profitably with the other, driven by the consumer’s inclusive retail approach.” “The consumer will seamlessly switch between channels depending on his needs and will not shun one for the other. His approach to channel selection will thus be ‘inclusive’ and not ‘exclusive’.”

Cabinet approves project-exit policy for highways developers

The government on May 13 approved a project-exit policy for highway developers and also authorised the state-run National Highways Authority of India (NHAI) to intervene in languishing projects that are suffering from lack of funds. The Cabinet Committee on Economic Affairs (CCEA), in a meeting here chaired by Prime Minister Narendra Modi, cleared the two proposals to give a renewed thrust to the highways sector. According to the CCEA, the comprehensive ‘exit policy’ framework now permits developers to divest 100 percent equity two years after the completion of construction. “It is relevant to note here that during the last few years, PPP projects have not been able to attract bids; one of the primary reasons being lack of availability of equity in the market among qualified bidders,” the CCEA said in a statement adding that the move will unlock equity from completed projects that can then be re-invested into new projects. “This decision will also harmonise conditions uniformly across all concessions signed prior to 2009 with the policy framework for post-2009 contracts,” the statement said. The statement pointed out that there are 80 such Build, Operate and Transfer (BOT) projects awarded prior to 2009 that have been completed and the lock-in equity in them works out to be Rs.4,500 crore. “Once this (equity) is unlocked and is re-invested in new projects, this could support 1,500 kms of new highways in PPP mode, thus reviving the response to BOT(T) projects,” the statement said. On the decision to allow NHAI to intervene in languishing projects, the CCEA said the approval is for projects that are in advanced stage of completion but are stuck due to lack of additional equity or the lenders’ inability to disburse funds further. The statement elaborated that NHAI will provide funds to such projects from within its overall budget on a loan basis at a pre-determined rate of return. “This loan is to be recovered along with interest as the first charge from the toll receipts immediately after completion of construction,” the statement added. Estimates with the government show that there are 16 projects that are languishing in various part of the country due to lack of funds.

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