INDIA FOLIO

Vol. 4 No. 4

Embassy of India ~ Copenhagen  

 APRIL 16, 2003

 

POLICY - ECONOMY


Commerce Minister Sets US$ 80 Billion Target for Export Growth

In the face of uncertainties prevailing in the international economy, the Union Commerce Minister of India, Mr. Arun Jaitley has unveiled his maiden Export-Import Policy for taking India's exports to the US$ 80 Billion mark by the year 2007, identifying several "engines" for export growth while building on areas of India's core competences.

In his Ex-Im Policy, Mr. Jaitley has given special priority to service exports, laying emphasis on exports of education-, entertainment-, healthcare-, and tourism-related services. While later elaborating  on his new strategy, the Minister pointed out that services constitute as much as 50% of India's GDP and should, therefore, receive their due place in the country's export strategy.

Services apart, Mr. Jaitley also sets store on agricultural & allied products exports and for this purpose has announced an array of incentives, including some for corporate investments in capacity building within the agricultural sector. He has furthermore continued the earlier emphasis on Special Economic Zones (SEZs) and has underlined the need to nurture "export clusters".

Reviewing India's export performance during the last one year, Mr. Jaitley remained confident that total exports would surpass US$ 50 Billion. The Minister disclosed that overall export growth has been to the tune of 16.75% in Dollar terms, top export sectors being textiles, gems & jewellery, engineering goods (particularly auto ancillaries), pharmaceuticals, and chemicals.


India Reiterates Strong Commitment towards Free Trade Area

India maintains its strong commitment towards the proposed Free Trade Area (FTA) in the so-called BIMST-EC Region (Bangladesh, India, Myanmar, Sri Lanka - Economic Co-operation), the Indian Minister of State for Commerce & Industry, Mr. Rajiv Pratap Rudy declared during the opening session of the 4th Trade/Economic Ministerial Meeting held in Colombo, Sri Lanka. The meeting was inaugurated by the Sri Lankan Prime Minister and is being attended by the Trade & Economy Ministers of all the member countries.

INVESTMENT


Credit Lyonnais: Foreign Investors Should Focus on India

Macro-economic aspects constitute no reason for foreign institutional investors (FIIs) to turn away from India, Credit Lyonnais Securities Asia's (CLSA's) emerging market analyst, Mr. Christopher Wood believes after a visit to India.

"If there are companies worth investing in, foreign investors should be happy to invest. Yet there are many major institutional investors globally who maintain a hands-off policy towards Indian equities, even if they are desperate to buy Chinese equities, whatever they may be. This is, frankly, absurd for a country, that by 2010 should be larger than Japan in purchasing power parity (PPP) terms", a recent report by the analyst says.

49% FDI in Ground Handling in Air India Allowed

49% Foreign Direct Investment has now been allowed in ground handling in Air India. - While security screening would be mandatory, foreign investors need to form joint ventures with Airports Authority of India, Indian Airlines, or Air India in order to enter this segment, which is estimated to generate business worth Indian Rupees 1,000 Crore (or nearly Danish Kroner 1.5 Billion) per annum.

 
Kerala Opens Roads & Ports for FDI

Taking the state-level fiscal reform measures a step ahead, the Indian constituent state of Kerala has decided to throw open its gates to Foreign Direct Investment in the key sectors of physical and social infrastructure as well as higher education. Consequently, the state has lined up 22 projects worth more than US$ 500 Million for foreign investment as a prelude to the Global Investors' Meet proposed to be held in January 2004.

IT - SECTOR


Second McKinsey ITES Facility Coming up in Kerala

Business intelligence major McKinsey is set to launch its second, 11,000 square feet large IT Enabled Services (ITES) unit at the Techno-park in the town of Thiruvananthapuram in Kerala.        This new graphics-programming unit is expected to create around 150 jobs.

McKinsey's first ITES facility Visual Graphics Computing Services India (VGI) in Chennai (Madras) has been operating as the visual graphics kitchen for the worldwide offices of McKinsey. While VGI creates visual communication tools like graphics, charts, exhibits, overhead transparencies, on-screen animated presentations, and multi-media products, the new unit's operations will focus on the development and application of customized graphics software.


National Rail to Set up Call Centres in India

Following British Telecom's decision to transfer call centres to the cities of Delhi and Bangalore, Britain's National Rail Enquiries is now considering shifting their call centres to India.

 "Our call centre contracts are due for renewal in 18 months. If anyone from India wants to bid for them, we will look at those bids.  The best bid will get it", a spokesman for the association of train operating companies says.

ENERGY SECTOR

Shell Files for Retail Licence in India

The world's third largest oil & gas group Royal Dutch/Shell has applied for a licence to sell petrol and Diesel from about 15,000 filling stations across India. Shell India's Business Development Manager, Mr. S. Ravi thus made a formal application for authorization to set up retail outlets along with an application fee of Indian Rupees 1 Million to the Petroleum Ministry.

 The company has the option to import petrol and Diesel through the state canalizing agency IOC or to tie up with the domestic refiners. The Petroleum Ministry had on earlier occasion agreed to Shell's request to be allowed to import petrol, Diesel, and aviation fuel freely for retailing in the country. - Necessary changes have to be made in the Export-Import Policy, for which the Indian Commerce Ministry has been approached.

ANNOUNCEMENTS


EXPRESSION OF INTEREST

Agents/Brokers for Shipbuilding & Shiprepairs to Hindustan Shipyard Ltd.,   Gandhigram, Visakhapatnam, India

Hindustan Shipyard Limited (HSL) is a Central Public Sector Undertaking wholly owned by the Government of India under the administrative control of the Ministry of Shipping. The organizational set-up is that the Chairman-cum-Managing Director is the full time Chief Executive heading the Board of Directors. The Board consists of two full time functional Directors viz., Director (Technical) and Director (Finance & Commercial) and two Government Directors, i.e. one from the Ministry of Shipping and the second from the Government of Andhra Pradesh.

Hindustan Shipyard Limited strategically located on the Eastern Coast of India in the State of Andhra Pradesh is the nation's first shipbuilding yard catering to the needs of various clienteles covering merchant shipbuilding and ship repairs for defence, coast guard, ports, oil sector, etc. Also HSL has got direct sea access, excellent infrastructure facilities with skilled work force, and experienced executives who have gained much experience over the past few decades in building 120 vessels aggregating over 1.25 million DWT representing HSL as the most competent service provider for the maritime sector in the entire region of South East Asia. Right from its inception, HSL has been a force to reckon with within the realms of shipbuilding initially and has successfully diversified into ship repairs, submarine/retrofit repairs, offshore and onshore structural fabrications. HSL is the first shipbuilding yard in India to be awarded ISO-9001 quality accreditation by LRQA, London for shipbuilding and structural fabrication.

Since its inception, HSL has had collaborations with various leading shipbuilding yards and has acquired technical know how to design and build all types of oceangoing vessels including defence vessels, supply vessels, and drill ships as well as passenger vessels. In respect of the Submarine Retrofit Division, an exclusive complex was added a few years back to undertake surveys of pressure hull, defectation of equipment, and systems of submarine. In the area of Shiprepairs, HSL has got a full-fledged shiprepair Division with dry dock and wet basin serving the needs of shiprepair requirements and can handle vessels upto 70,000 DWT. HSL's shiprepair Division has also accomplished intricate repair jobs on a variety of naval vessels, submarines, merchant ships, oil rigs, and oil tankers. So far about 1,600 vessels were taken up for repairs.

HSL is now looking for international business in both shipbuilding, shiprepair, and offshore constructions/ repairs and is looking for Agents to function as HSL's representatives in the above fields. Interested parties may contact HSL expressing their willingness with details of terms and conditions to act as Agents for HSL to bring new business in the areas of shipbuilding/shiprepairs. Pertaining to the Agent's commission/remuneration will not be a limiting factor and can be arrived at by mutual understanding/ agreement. - Interested parties may contact the G.M. (Shiprepairs), phone: 0091 891 25 77 295 for shiprepair activity and the Manager (D&DO), phone: 0091 891 22 77 966 for shipbuilding activity, registering and to negotiate further for working as Agents.

Contact to Hindustan Shipyard Ltd. can also be established through the Embassy of India in Copenhagen.

 

Issued by the Embassy of India, Commercial Section15, Vangehusvej - DK-2100 Copenhagen Tel: 39290854/39182888 - Fax: 39270218
E-Mail: indcom@songmail.dk - Web: www.indian-embassy.dk 

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