India-Madagascar MoU on Agricultural Cooperation

The Indian Cabinet on 12 April 2008 gave its approval for signing an MoU on agricultural cooperation between the governments of the Republic of Madagascar and the Republic of India. The cooperation between the two Parties will be in the fields of agricultural research, agricultural machinery and technology, soil and watershed development, agricultural trade and marketing, plant protection, horticulture, animal husbandry, livestock, fertilizer production and any other field as will be mutually agreed upon by the Parties. The Memorandum will come into force on the day of signing and will remain valid for a period of 5 years, and will be automatically renewed for a subsequent period of five years unless either party notifies the other, in writing, six months before the expiry of the validity period of its intention to terminate it. The MoU will promote further bilateral cooperation through joint activities and exchanges in the areas of agriculture through exchange of scientific delegations and experts between the two countries.

India Calls for SME Ties with Romania

Kamal Nath, India’s Minister of Commerce and Industry, has called for increasing the bilateral trade between India and Romania, considering the untapped opportunities for exploiting the potential for growth. Speaking at a bilateral meeting with Mr. Varujan Vosganian, Minister of Economy and Finance, Government of Romania, in New Delhi on 04 March 2008, the Indian minister said the Indo-Romanian trade which, stagnated over the last decade, was now on the upswing. Bilateral trade has grown from US$68 million in the year 2000 to US$430 million during 2006-07, and added that India has a vibrant SME sector and engagement by SMEs on both sides would strengthen the foundations of the trade relationship.

During the meeting, Nath stated that the Indian economy is one of the fastest growing economies in the world and it is also the fourth largest in terms of purchasing power parity. Both sides noted about the B2B engagement would take the bilateral trade relationship to higher levels. Major export items to Romania are: iron ore, drugs, pharmaceuticals & fine chemicals, machinery & instruments, processed minerals and plastic & linoleum products. The major import items from Romania are: iron & steel, machinery except electric & electronic, transport equipments, wheat and Metalifers ores & metal scrap.

India Talks to Venezuela on Energy Security

Terming India as one of the largest emerging markets in the world, President Hugo Chavez of Venezuela on 10 April 2008 assured visiting Petroleum Minister Murli Deora of full cooperation in addressing India´s energy security. He expressed his happiness with the on-going cooperation in the oil sector between India and Venezuela and assured his support for more projects. Stressing the importance of relations in the hydrocarbon sector, President Chavez also emphasised that there are many more areas like industry, health, pharmaceuticals, science and technology in which the two countries could move forward. He added the initiatives already taken by Venezuela and India highlight that a lot more can be achieved by exchanging enhanced level of interaction by the two nations.

It was agreed that the Joint Commission meeting to be held shortly would finalise the detailed agenda for cooperation. Deora stressed the need for further expanding cooperation in the oil sector evincing India´s interest to participate in the development of upstream, refining and gas marketing and distribution of Venezuela besides providing training to its oil technologists in the state-of-art facilities with Indian oil PSUs. Earlier, Deora also had a fruitful meeting with the Foreign Minister of Venezuela. A wide range of issues were discussed in the meeting including projects for criss-cross investment, avoidance of double taxation, enhancing cooperation in S&T areas, optimum utilisation of ITEC scholarship offered by India.

India-Finland Agreement on S&T

India and Finland have signed an Agreement on Cooperation in Science & Technology that provides for a broad based framework of cooperation in the areas of research, development and innovation policies between the two countries with renowned cutting-edge technologies. The agreement was signed by Kapil Sibal, Union Minister of Science & Technology and Earth Sciences, and Mauri Pekkarinen, Finnish Minister of Economic Affairs in Helsinki on 25 March 2008.

Speaking on the occasion, Sibal said that the way forward for the bilateral relations is to set up an innovation industrial R&D fund enabling technology access to market for mutual benefit of the people of India and Finland. Mr. Pekkarinen termed the visit of the Indian Minister as a big event in the bilateral relations between India and Finland. Bilateral relations with Finland, an important member of the European Union with proven technological capabilities in ICT, Biotechnology, industrial machinery and paper industry, have assumed a dynamic edge following the exchange of Prime Ministerial visits in 2006. The India-EU Summit meeting took place in Helsinki in October 2006 during Finland’s EU Presidency. Bilateral trade, which in 2007 was valued at Euro 645.08 million has grown by over 20 percent. Two-way investments are growing with Finnish majors like Nokia, Elcoteq, Kone and Wartsila now well established in India. Indian investments in Finland are also making an impact in areas such as ICT and renewable energy. Finland is renowned for its environment-friendly, innovative technological capabilities, which would be beneficial for India’s booming economic development.

India-Japan in Currency Swap

The Indian Cabinet, on 27 March 2008, gave its approval for authoriSing the Reserve Bank of India (RBI) to sign the proposed Currency Swap Agreement with the Bank of Japan to exchange an amount of US$3 billion against the respective domestic currency for mitigating a short-term Balance of Payment (BoP) problem.

The RBI will affect the actual drawdown when the Government judges that it should be drawn down, after consulting RBI. This is an additional arrangement outside IMF to meet short-term liquidity in US$ during a Balance of Payment crisis. It is a cost effective tool of achieving the strategic objective of demonstrating regional cooperation.

India-Myanmar Double Taxation Avoidance Agreement

India has signed a Double Taxation Avoidance Agreement (DTAA) with the Government of Myanmar. The agreement signed on 02 April 2008 by Mr. PK Misra, Chairman, Central Board of Direct Taxes on behalf of India and HE Mr. Kyi Thein, Ambassador of the Union of Myanmar to India, on behalf of the Government of the Union of Myanmar. The signing of the agreement coincided with the visit of HE Maung Aye, Vice Senior General and Vice Chairman, State Peace and Development Council of Myanmar to India. The DTAA is expected to provide tax stability to the residents of both the countries and facilitate mutual economic cooperation as well as stimulate the flow of investment, technology and services between India and Myanmar.

India and Sweden to Widen Economic Cooperation

During the bilateral meeting between Mr. Kamal Nath, Indian Minister for Commerce & Industry and the visiting Swedish Minister of Foreign Trade, Dr. Ewa Bjorling in New Delhi on 31 March 2008. Mr. Nath stated that India is seeking active cooperation in the field of higher education. He further mentioned that India and Sweden have identified complementarities in high-tech areas of IT, biotech, automotive industry and electronics, and that, it is necessary for the two countries to catalyse cooperation in the region by involving industry, academia and local universities. Both sides discussed development of trade and economic relations. While expressing his appreciation for the Swedish government’s desire for enhanced engagement with India, Nath said, “Sweden’s strong interest to deepen and diversify relations with India especially in the area of trade and economic development also in frontier areas of high technology”. He also stated that India recognised the importance of early holding of 15th meeting of the Indo-Swiss Joint Commission in 2008. The bilateral trade between India and Sweden during the year 2006-07 was to the tune of US$2322 million, compared to US$1498 million in 2005-06.

India-Tunisia in SME Cooperation

The first India-Tunisia Joint Committee meeting was held in New Delhi on 08 April 2008 under the Chairmanship of Mr. Dinesh Rai, Secretary, Ministry of Micro, Small & Medium Enterprises (MSMEs). Mr. Mohamed Agrebi, Director General in charge of the Promotion of SMEs in the Tunisian Ministry of Industry, Energy and SMEs, led the Tunisian delegation. The meeting was convened in order to initiate the Cooperation Agreement in the field of Small and Medium-sized Enterprises signed between India and Tunisia last year. The Tunisian side evinced keen interest in various MSMEs in India, especially sharing of experience and technology in the field of Garment and Textiles, Electro-mechanical Industries, Food Processing Industries and Information Technology. Besides, cooperation in the area of incubators and BPO, Technical support to SMEs, Institutional mechanism for providing credit to SMEs etc. were also discussed. The Indian side identified various possible areas of cooperation with Tunisia. These include: i) Capacity building for formulation of industrial development policy and institutional framework for SMEs in Tunisia based on local resources; ii) Industrial potential surveys and feasibility studies to identify thrust areas and opportunities for MSMEs in Tunisia; iii) Entrepreneurship development/skills training; and, iv) Setting up of Vocational Training Centres. Representatives of various Ministries and Institutions also attended the meeting.

India Invites Turkey for Infrastructure Investment

Mr. Kamal Nath, Union Minister of Commerce and Industry, has invited the Turkish Companies to explore the Indian markets and make investments, especially in the infrastructure sector as it has the promise of sustained high levels of returns, and added that Indian companies are also committed to make investments in Turkey. This he said during the bilateral meeting with Kursad Tuzmen, Turkish State Minister for Foreign Trade, in New Delhi on 18 March 2008. Both sides agreed that India and Turkey could collaborate in R&D and their commercial spin-offs in the fields of bio-technology, nano-technology and information technology.

Indian investments in Turkey are in diverse sectors viz., railway construction, electricity transmission, pipelines, consultancy services for earthquake emergency, hydro-carbon, CNG conversion and IT services. Turkish investments in India are in sectors of tourism & travel, home textile products, and construction/maintenance of roads. During the discussions, both sides agreed to strengthen the bilateral trade relationship particularly in the small & medium enterprises (SME) sector. Indo-Turkish trade is on the upswing and has grown from US$1193 million in 2005-06 to US$1653 million in 2006-07.

India will Sign Agro Pact with Brazil

The Union Cabinet on 11 April 2008 gave its approval for signing the Agreement between India and Brazil on cooperation in the field of Agriculture and Allied Sectors including research and development, production technologies and equipment, financing and micro-credit system for small farmers, post harvest management, agro and food processing, cold chain, labs and R&D in the processed food sector as also primary processing at farm level, marketing, animal husbandry, dairying, aquaculture and fisheries, sanitary and phyto-sanitary issues, trade in agricultural products, exchange of experiences and expertise in rural development programmes and up-grading rural infrastructure. Partnership with public and private sector institutions is also envisaged. The MoU will promote bilateral cooperation through research and development, production, small holder agriculture, post-harvest management, animal husbandry, dairying, aquaculture, fisheries, rural development etc. which will be beneficial for the two countries.

India-Mauritius MoU for Social Defence

The Union Cabinet, on 12 April 2008, gave its ex post facto approval for signing of an MoU between India and Mauritius in the field of Social Defence. The MoU for cooperation in the field of social defence including welfare of elders, programmes of drug demand reduction, disabilities etc. was entered into by the two governments on 03 November 2007. The Minister for Social Justice & Empowerment, India and the Minister of Social Security, National Solidarity & Senior Citizens Welfare and Reform Institutions, Republic of Mauritius, signed the MoU.

Air Services Agreement with Mexico and Chile

The Government of India has approved the signing of Air Services Agreement (ASA) with two countries. One is between the Government of India and Government of United Mexican States and the other is with the Republic of Chile. The new arrangements signify important landmarks in the Civil Aviation relations between India and the two countries and will pave the way for establishment of air links. The Agreements will be signed on behalf of the two countries after the respective Governments have approved it. Implementation will be watched and reported by the Ministry of Civil Aviation.

India-Singapore Naval Exercises

‘SIMBEX 2008’, was conducted on India’s Eastern seaboard between the 16 and 30 March 2008. SIMBEX is an acronym that stands for ‘Singapore India Maritime Bilateral Exercises’ and is an institutionalised and regular series of annual exercises conducted between the Indian Navy and the navy of the Republic of Singapore (RSN). The Indian Navy’s operational interaction with the RSN, which commenced with modesty - pitched anti-submarine training exercises in 1994, has grown steadily and impressively over the past 14 years. For SIMBEX-2008, Singapore fielded one ‘Endurance class’ landing platform dock (RSS Persistence), one ‘Formidable class’ frigate (RSS Formidable), two ‘Victory Class’ guided- missile corvettes (RSS Vigilance and Valour), and one ‘Fokker-50’ maritime patrol aircraft. Indian participation in the exercise included one guided missile destroyer (INS Rajput), one guided-missile frigate (INS Gomati), two guided-missile corvettes (Kirch & Kuthar), two missile vessels (Vinash Vibhut), one fast attack craft (INS Trinkat), one submarine(INS VAGLI) shore-based fighter aircraft (IN Kiran & IAF MIG-27s) medium-range maritime patrol aircraft (Dornier) and shipborne helicopters. Bilateral interaction was progressed at sea as well as in harbour. Whilst the harbour phase focussed on sharing operational experiences through professional interaction, the sea phase concentrated upon the conduct of a plethora of exercises ranging from surface firings and anti aircraft engagements to anti submarine warfare exercises and serials involving the deployment and coordination of maritime patrol aircraft as well as shore based fighters.

India and Yemen in Oil Exploration Pacts

Indian oil companies signed agreements for 5 hydrocarbon exploration blocks in Yemen on 13 April 2008 at Sanaa, the capital city of Yemen. These included agreements for block Nos. 82 & 83 by Oil India Limited (OIL) and Indian Oil Corporation (IOC) consortium with their foreign collaborators Medco Energy and Kuwait Energy Company and for block Nos. 19, 28 and 57 by Gujarat State Petroleum Corporation with their foreign collaborators Jubilant Enpro and Alkor Petro. The agreements were signed in the presence of Yemeni Minister of Oil and Minerals Khaled Mahfoudh Bahah, senior officials in the Ministry of Oil and Minerals, representatives of various oil companies in Sanaa. Speaking on the occasion the Minister of Oil of Yemen expressed great optimism in the Indian oil companies and said that he looks forward to them starting their operations in Yemen in the near future. The signed agreements will go for ratification by the Yemen Parliament and then eventually would be sent for the signature of the President of Yemen. This process is expected to take about two months or so. Thereafter the agreements will become operational and the work on exploration and prospecting of hydrocarbon is expected to commence during 2008 itself.

Agreement with Turkmenistan

An MoU between Indian Ministry of Petroleum & Natural Gas and Ministry of Oil/Gas Industry and Mineral Resources of Turkmenistan was signed in Ashgabat, Turkmenistan on 05 April 2008 during the visit of Indian Vice-President Mr. M Hamid Ansari to Turkmenistan. The objective of the MoU is to establish a cooperative institutional relationship to develop bilateral cooperation in the field of oil and gas. India is pursuing import of natural gas from Turkmenistan through Turkmenistan-Afghanistan-Pakistan-India (TAPI) Gas Pipeline Project. Meetings of the Technical Working Group and Steering Committee of the participating countries took place in Islamabad, Pakistan between 21 and 24 April 2008.

India and UAE to Revise Air Services

The Governments of India and the UAE met in New Delhi on 23 April 2008 to discuss matters relating to Air Services between India and Dubai. An MoU was signed between the two countries on the revised air service operations between points in India and Dubai. It was agreed that Calicut will be an additional point of call for the designated airlines of the UAE. The designated airlines of India and the designated airlines of the UAE will each be entitled to operate a total of up to 54,200 seats per week in each direction, which is an addition of 23,000 per week. There will be 39,200 seats per week in each direction with immediate effect, 48,200 seats per week in each direction from winter 2008-09, 51,200 seats per week in each direction with effect from summer 2009 and 54,200 seats per week in each direction from winter 2009-10. The Indian government had requested the inclusion of a provision for “change of gauge” (change the type of aircraft) in the territory of UAE (Dubai) and India, for both sides in the Air Services Agreement. The UAE delegation agreed to revert through correspondence after internal consultations. The UAE delegation’s request for grant of six additional points of call in India – Amritsar, Mangalore, Pune, Tiruchirapalli, Coimbatore and Goa will also be considered by the Indian side and intimated to the UAE Government through correspondence.

MoU with Malaysia on Labour

An MoU on Labour & Manpower Development between India and Malaysia has been finalised at the official level. The two governments are completing necessary producers for signing the MoU at the earliest. The proposed MoU will lay down the institutional framework for bilateral cooperation to facilitate employment, protection and welfare of Indian emigrant workers, especially the unskilled, semi-skilled and skilled workers. The existing workers will also be covered under the proposed MoU, which also provides for the constitution of a Joint Working Group for better coordination between the two countries.

Investment Promotion and Protection Agreement with Bangladesh

The Union Cabinet on 24 April 2008 gave its approval for signing and ratification of Bilateral Investment Promotion and Protection Agreement (BIPA) with the People’s Republic of Bangladesh. The objective of the Agreements is to promote and protect the interests of investors of either country in the territory of the other country. Such Agreements increase the comfort level and boost the confidence of the investors by assuring a minimum standard of treatment and non-discrimination in all matters while providing for justice with regard to disputes with the host country. The Agreement is likely to increase investment flow between the two countries.

Film Agreement – India and UK/Northern Ireland

The Union Cabinet on 24 April 2008 gave its approval to the Ministry of Information & Broadcasting for signing the Annex (Rules of Procedure) to the Film Co-production Agreement signed with Government of United Kingdom of Great Britain and Northern Ireland, thus enabling the Indian film industry to co-produce films with the film industry of United Kingdom. The Agreement will encourage the making of films reflecting the diversity of culture and heritage of both countries, with benefits flowing to both co-producers.