Impact of Greek Debt Crisis
Impact of Greek Debt Crisis
The Greek Debt crisis has impacted India’s bilateral trade with Greece.
Values in US $ Millions
|
Export/Import/
Growth
|
2014-15
|
2015-16
(Prov.)
Apr-Jun
|
|
Exports
|
360.84
|
84.75
|
|
% Growth
|
7.67
|
(-)
15.45
|
|
Imports
|
127.75
|
39.36
|
|
% Growth
|
16.73
|
11.95
|
|
Total Bilateral Trade
|
488.59
|
124.11
|
|
% Growth
|
9.90
|
(-)
8.33
|
The volume of software and engineering
exports of India to Greece is not very large hence there is negligible impact,
however there is not much impact on Eurozone.
No trickle-down effect of the crisis in
India is anticipated at this stage; however, institutional mechanism is in
place with Greece where steps can be discussed.
This information was given by the
Minister of State (Independent Charge) in the Ministry of Commerce &
Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
***
SEZs
Operational in the Country
In addition to Seven
Central Government Special Economic Zones (SEZs) and 11 State/Private Sector
SEZs set-up prior to the enactment of the SEZs Act, 2005, formal approval has
been accorded to 416 proposals out of which 330 SEZs have been notified.
Presently, a total of 202 SEZs are exporting. A list showing State/UT-wise
distribution of operational SEZs is given below:-
.
|
State/UT-wise distribution of Operational SEZs
(As on 31.07.2015)
|
|
|
States/UTs
|
Operational SEZs
|
|
Andhra Pradesh
|
19
|
|
Chandigarh
|
2
|
|
Chhattisgarh
|
1
|
|
Gujarat
|
18
|
|
Haryana
|
6
|
|
Karnataka
|
26
|
|
Kerala
|
15
|
|
Madhya Pradesh
|
2
|
|
Maharashtra
|
25
|
|
Odisha
|
2
|
|
Punjab
|
2
|
|
Rajasthan
|
4
|
|
Tamil Nadu
|
36
|
|
Telangana
|
26
|
|
Uttar Pradesh
|
11
|
|
West Bengal
|
7
|
|
GRAND TOTAL
|
202
|
The fiscal concessions and duty benefits allowed to Special Economic Zones
(SEZs) are in-built into the SEZs Act, 2005 and Rules thereunder. The
incentives and concessions available to SEZ Developers and Units include
exemptions from income tax, customs/excise duties, central sales tax, service
tax, VAT, etc. These fiscal concessions and duty benefits allowed to SEZs are
in the nature of incentives to achieve the SEZ objectives. The revenue foregone
on account of concessions availed by the SEZ Developers and Units under the
provisions of sections 10AA and 80-LA of the Income Tax Act, 1961 as well as
customs duty and excise duty availed during the last three years is as under:-
|
Sl. No.
|
Financial Year(s)
|
Revenue Foregone
(Rs. in crore)
|
|
1
|
2012-13
|
23305.40
|
|
2
|
2013-14
|
27855.10
|
|
3
|
2014-15 (estimated)
|
26533.87
|
This information was given by the
Minister of State (Independent Charge) in the Ministry of Commerce &
Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
****
FDI in 2015-16
The
sector-wise information on FDI equity inflow received during Financial Year
2015-16 (upto May, 2015) is as below:
|
S.No
|
Sector
|
Amount of FDI Inflows
|
|
|
|
|
(In Rs crore)
|
(In US$ million)
|
|
1
|
COMPUTER SOFTWARE & HARDWARE
|
14,428.43
|
2,273.13
|
|
2
|
AUTOMOBILE INDUSTRY
|
6,355.14
|
1,006.84
|
|
3
|
TRADING
|
4,186.78
|
663.47
|
|
4
|
SERVICES SECTOR (Fin.,Banking,Insurance,Non
Fin/Business,Outsourcing,R&D,Courier,Tech. Testing and Analysis, Other)
|
3,091.15
|
488.06
|
|
5
|
CONSTRUCTION (INFRASTRUCTURE) ACTIVITIES
|
2,357.32
|
373.90
|
|
6
|
TELECOMMUNICATIONS
|
2,320.27
|
363.75
|
|
7
|
SEA TRANSPORT
|
1,147.55
|
182.33
|
|
8
|
HOSPITAL & DIAGNOSTIC CENTRES
|
1,028.20
|
163.27
|
|
9
|
DRUGS & PHARMACEUTICALS
|
1,010.25
|
158.66
|
|
10
|
HOTEL & TOURISM
|
999.91
|
157.58
|
|
11
|
POWER
|
976.37
|
154.82
|
|
12
|
CHEMICALS (OTHER THAN FERTILIZERS)
|
951.44
|
149.96
|
|
13
|
SOAPS, COSMETICS & TOILET PREPARATIONS
|
830.78
|
132.35
|
|
14
|
MISCELLANEOUS INDUSTRIES
|
697.42
|
110.29
|
|
15
|
ELECTRICAL EQUIPMENTS
|
681.29
|
107.82
|
|
16
|
TEXTILES (INCLUDING DYED,PRINTED)
|
570.26
|
90.54
|
|
17
|
RUBBER GOODS
|
484.38
|
76.72
|
|
18
|
METALLURGICAL INDUSTRIES
|
466.99
|
73.80
|
|
19
|
EDUCATION
|
464.29
|
73.77
|
|
20
|
INFORMATION & BROADCASTING (INCLUDING PRINT MEDIA)
|
454.23
|
71.55
|
|
21
|
NON-CONVENTIONAL ENERGY
|
449.26
|
71.06
|
|
22
|
INDUSTRIAL MACHINERY
|
413.47
|
65.44
|
|
23
|
FOOD PROCESSING INDUSTRIES
|
373.96
|
59.02
|
|
24
|
MISCELLANEOUS MECHANICAL & ENGINEERING INDUSTRIES
|
353.84
|
56.04
|
|
25
|
ELECTRONICS
|
353.58
|
55.55
|
|
26
|
EARTH-MOVING MACHINERY
|
276.28
|
44.02
|
|
27
|
PRINTING OF BOOKS (INCLUDING LITHO PRINTING INDUSTRY)
|
189.67
|
30.00
|
|
28
|
CONSULTANCY SERVICES
|
185.82
|
29.29
|
|
29
|
MEDICAL AND SURGICAL APPLIANCES
|
150.20
|
23.90
|
|
30
|
DIAMOND,GOLD ORNAMENTS
|
114.21
|
17.91
|
|
31
|
TIMBER PRODUCTS
|
102.97
|
16.14
|
|
32
|
CERAMICS
|
101.05
|
16.10
|
|
33
|
PRIME MOVER (OTHER THAN ELECTRICAL GENERATORS)
|
101.26
|
15.87
|
|
34
|
SUGAR
|
90.00
|
14.34
|
|
35
|
VEGETABLE OILS AND VANASPATI
|
78.37
|
12.28
|
|
36
|
CEMENT AND GYPSUM PRODUCTS
|
57.20
|
9.12
|
|
37
|
RAILWAY RELATED COMPONENTS
|
41.05
|
6.54
|
|
38
|
AGRICULTURE SERVICES
|
37.64
|
5.99
|
|
39
|
PETROLEUM & NATURAL GAS
|
31.35
|
5.00
|
|
40
|
LEATHER,LEATHER GOODS AND PICKERS
|
31.34
|
4.98
|
|
41
|
MACHINE TOOLS
|
22.18
|
3.51
|
|
42
|
INDUSTRIAL INSTRUMENTS
|
21.97
|
3.44
|
|
43
|
AIR TRANSPORT (INCLUDING AIR FREIGHT)
|
21.57
|
3.39
|
|
44
|
COMMERCIAL, OFFICE & HOUSEHOLD EQUIPMENTS
|
16.27
|
2.59
|
|
45
|
PAPER AND PULP (INCLUDING PAPER PRODUCTS)
|
15.03
|
2.36
|
|
46
|
MINING
|
13.88
|
2.21
|
|
47
|
FERMENTATION INDUSTRIES
|
12.70
|
2.00
|
|
48
|
CONSTRUCTION DEVELOPMENT: Townships, housing, built-up infrastructure
and construction-development projects
|
12.06
|
1.90
|
|
49
|
GLASS
|
6.02
|
0.95
|
|
50
|
AGRICULTURAL MACHINERY
|
5.14
|
0.81
|
|
51
|
SCIENTIFIC INSTRUMENTS
|
1.32
|
0.21
|
|
52
|
DYE-STUFFS
|
0.25
|
0.04
|
|
|
Grand Total
|
47,183.37
|
7,454.64
|
Proposals for big investments pertains to
Pharmaceuticals, Information & Broadcasting, Insurance, Non-banking Finance
Companies, Private Banks and other financial sectors. There are 19 proposals of
big investments, each in excess of Rs. 100 crores under consideration of
Government. Estimated investment in respect of these proposals is Rs.
30,552.45 crores.
This
information was given by the Minister of State (Independent Charge) in the
Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply
in Rajya Sabha today.
***
Industrial Development Centres in Uttar Pradesh, Bihar and Maharashtra
Department of Industrial Policy and Promotion under Ministry of Commerce and
Industry has notified “Modified Industrial Infrastructure Upgradation Scheme
(MIIUS)” in July, 2013 for taking up new projects to upgrade
infrastructure in existing Industrial Parks/Estates/Area. Greenfield projects
in backward areas and North Eastern Region (NER) have been sanctioned under the
scheme. State Implementing Agencies of the all the State Governments were
requested to submit project proposals for sanctioning new project.
However, no project proposal has been received conforming to MIIUS guidelines
during the last two years from Uttar Pradesh, Bihar and Maharashtra.
However, two ongoing projects in Maharashtra under
Recast Industrial Infrastructure Upgradation Scheme (IIUS)-2009 has been
provided funds during the last two years. Details of
funds provided to the projects during the last two years are as under:
(Rs. in crore)
|
Name of Project
|
Amount of funds provided
during last two years
|
|
|
2013-14
|
2014-15
|
|
|
Marathwada Automobile
Cluster, Aurangabad
|
4.57
|
12.10
|
|
Kolhapur Foundry Cluster
|
---
|
18.01
|
Under
MIIUS, approval has been accorded to 26 new projects in different states of the
country.
This information was given by the Minister of State (Independent Charge)
in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written
reply in Rajya Sabha today.
****
Roping in States to Boost Exports
A Council for Trade Development and Promotion has been constituted on 03.07.2015 with the objective of ensuring a continuous dialogue with State Governments and UTs on measures for providing an international trade enabling environment in the States and to create a framework for making the States active partners in boosting India’s exports.
All the States and UTs have already been communicated about the constitution of the aforesaid Council including the State Governments of Andhra Pradesh and Telangana.
The Minister in-charge of Trade and Commerce in States/UTs including Andhra Pradesh and Telangana are members of the Council along with other stake holders and trade organizations such as FICCI, ASSOCHAM etc.
This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
****
Overhauling of Import and Export Policy
In order to give a boost to India’s exports and for diversification of Indian export markets and products, the Government has recently announced its Foreign Trade Policy (FTP) 2015-20, on 1.4.2015. The FTP 2015-20 also includes several measures to encourage domestic manufacturing under ‘Make in India’ mission of the government e.g. (i) Reduction in Export Obligation under EPCG scheme, in case capital goods are procured from indigenous manufacturers (from 90% earlier to 75% now), (ii) Higher level of rewards under Merchandise Exports from India Scheme (MEIS) for export items having high domestic content and value addition.
The Government policy is to encourage free trade i.e. exports as well as imports. As per the present import policy, only 59 EXIM Codes are in prohibited category (0.5%), while 437 EXIM Codes are in restricted category (3.8%) and the remaining EXIM Codes (95.7%) are free for import. Some of the imported products are essential for the economy of the country, as well as for export of value added products. However, Government performs periodic import appraisal to evaluate the quantum of imports and takes steps, as and when necessary, for regulating the import e.g. (i) increase/decrease in custom duty, (ii) imposition of safe-guard duty, (iii) imposition of anti-dumping duty, (iv) imposition of minimum import price, (v) quantity restrictions, (vi) port restrictions, (vii) registration requirement and (viii) imposition of quality standards etc.
This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
****
Creation of White Grid in South Asia
The objective to create Milk Grid within the SAARC region is to promote greater intra-regional trade in milk and milk products rather than resorting to imports of such products from outside the SAARC region. This may improve per capita availability of milk in South Asia by linking milk surplus countries with deficit countries, which will help in meeting the nutritional needs of the population.
Under the Trade Liberalisation Programme of SAFTA, Government had given Zero duty market access for imports of milk and milk products from Afghanistan, Bangladesh, Bhutan, Nepal, and Maldives.
This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
****
Government Defers the proposed talks between the Chief negotiators on India –EU Broadbased Investment and Trade Agreement (EU-BTIA)
Government of India has taken a decision to defer the proposed talks between the Chief negotiators on India –EU Broadbased Investment and Trade Agreement (EU-BTIA) for the present. This decision has been taken as “The Government of India is disappointed and concerned by the action of EU in imposing legally binding ban on the sale of around 700 pharma products clinically tested by GVK Biosciences, Hyderabad’. The Government has engaged on the issue with various EU regulators over past 8 months.
Pharmaceutical industry is one of the flagship sectors of India which has developed its reputation through strong research and safety protocols over the years and therefore, Government of India will examine all options in this regard. It is pertinent to mention that most of these drugs are already in EU market for many years without any adverse pharmaco-vigilance report from any member state.
****
Strategy for Expansion of E-Commerce
The following steps have been taken for effective expansion and foreign investment promotion of e-commerce in India:
(i) the FDI policy provides FDI up to 100% under the automatic route in B2B e-commerce activities.
(ii) Finance Minister, in his Budget Speech, given on 10.7.2014, has made following statement:
“FDI in the manufacturing sector is today on the automatic route. The manufacturing units will be allowed to sell its products through retail including e-commerce platforms without any additional approval.”
As per regulation framed under the Foreign Exchange Management Act, (FEMA) 1999, 100% FDI is permitted under automatic route only in B2B e-commerce activities and not in retail trading. FDI is also not permitted in retail trading, in any form, by means of e-commerce, for companies engaged in the activity of single/multi brand retail trading.
This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
****
Setting up of Industrial Townships
Government of India is developing Industrial Townships under the Delhi Mumbai Industrial Corridor Projects. The following four Industrial Townships are moving towards implementation and are expected to be set up by the end of 2019. An amount of Rs. 2572.99 crore has been allocated for implementation of these townships as on 30.06.2015.
1. Ahmedabad-Dholera Special Investment Region, Gujarat
2. Shendra-Bidkin Industrial Park, Maharashtra
3. Integrated Industrial Township ‘Vikram Udyogpuri’ near Ujjain, Madhya Pradesh
4. Integrated Industrial Township Greater Noida Limited
To give a boost to the industrial growth resulting into industrial production as well as generation of more employment, Government has taken various measures which include launch of ‘Make in India’ programme, implementation of National Manufacturing Policy (NMP), simplification and rationalization of the Foreign Direct Investment (FDI) Policy, development of industrial/economic Corridors. Other measures include launch of the e-Biz Mission Mode Project under the National e-Governance Plan, incentives for helping industries in difficult areas through Plan Schemes of Transport Subsidy, special package of incentives for Special Category States, North-East Industrial & Investment Promotion Policy, and specific programmes like Modified Industrial Infrastructure Upgradation Scheme, Indian Leather Development Programme etc.
This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
****
Growth of Organised Manufacturing Production
The Index of Industrial Production (IIP) measures performance of industrial sector, including mining, manufacturing and electricity sector at base year 2004-05.The IIP in manufacturing sector measures the performance of organised manufacturing sector. As per IIP, the rate of growth of manufacturing sector was 1.3 %, (-) 0.8 % and 2.3 during 2012-13, 2013-14 and 2014-15 respectively.
The Government has taken / is continuously taking measures including administrative and regulatory to accelerate the growth of industrial sector. Global economic scenario as well as the steps taken by the Government impact performance in the manufacturing sector in the short, medium and long term. For creation of conducive business environment, the Government is constantly simplifying and rationalizing the processes and the procedures for boosting investor sentiment, simplifying the Foreign Direct Investment (FDI) policy and correcting the inverted duty structure. Some of the recent initiatives towards this end include pruning the list of industries that can be considered as defence industries requiring industrial license, two extensions of two years each in the initial validity of three years of the industrial license permitted up to seven years, removal of stipulation of annual capacity in the industrial license, and deregulating the annual capacity for defence items for Industrial License. The recent amendments in FDI policy include allowing FDI in Defence up to 49%, in Railway infrastructure up to 100%, in Insurance and Pension Sector upto 49%. The investment limit requiring prior permission from Foreign Investment Promotion Board (FIPB)/Cabinet Committee of Economic Affairs is increased from Rs. 1200 crore to Rs. 3000 crore. The definition of investment by Non Resident Indians (NRIs), Person of Indian Origin (PIOs) and Overseas Citizen of India (OCIs) in FDI policy has been revised. Further, except for Defence and private sector banking for which specific conditions apply, composite caps on foreign investment have been recently allowed so that uniformity and simplicity are brought in across the sectors in FDI policy for attracting foreign investment.
Inter alia, the Government has launched the e-biz Mission Mode Project under the National e-Governance Plan, and is implementing the Delhi Mumbai Industrial Corridor (DMIC) project. In addition, the Government has conceptualized Amritsar Kolkata Industrial Corridor, Chennai-Bengaluru Industrial Corridor, Bengaluru Mumbai Economic Corridor and the Vizag-Chennai Industrial Corridor (as the first phase of an East Coast Economic Corridor), and setting up a National Industrial Corridor Development Authority (NICDA) for coordinating and overseeing progress of the various industrial corridors.
Recently, the Government has launched “Make in India” programme with 25 thrust sectors to provide a major push to manufacturing in India. An Investor Facilitation Cell has also been created in ‘Invest India’ to assist, guide, handhold and facilitate investors during the various phases of business life cycle. This Cell provides necessary information on vast range of subjects; such as, policies of the Ministries and State Governments, various incentive schemes and opportunities available, to make it easy for the investors to make necessary investment decision. Information on 25 thrust sectors has been put up on ‘Make in India’s web portal (http://www.makeinindia.com) along with details of FDI Policy, National Manufacturing Policy, Intellectual Property Rights and Delhi Mumbai Industrial Corridor and other National Industrial Corridors.
This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
****
New Initiatives to Attract Foreign Investment
India has one of the most liberalized FDI policy regimes in the world. Government has put in place an investor-friendly policy on FDI, under which FDI, up to 100%, is permitted, under the automatic route, in most sectors/activities. Significant changes have been made in the FDI policy regime from time to time, to ensure that India remains increasingly attractive and Investor-friendly.
In the light of the importance of foreign direct investments for economic growth and development, the government announced key FDI reforms in the defence and railways sectors. The entire range of rail infrastructure was opened to 100% FDI under the automatic route, and in defence, sectoral cap was raised to 49%. To boost infrastructure creation and to bring pragmatism in the policy, the Government reviewed the FDI policy in the construction development sector also by creating easy exit norms, rationalizing area restrictions and providing due emphasis to affordable housing.
To give impetus to the medical devices sector, a carve out was created in FDI policy on the pharmaceutical sector and now 100% FDI under automatic route is permitted. The Government, in order to expand insurance cover to its large population and to provide required capital to insurance companies, raised the FDI limit in the sector to 49%. Pension sector has also been opened to foreign direct investment up to the same limit. The FDI policy provisions pertaining to NRI investment have also been clarified by providing that for the purposes of FDI policy, investment by NRIs on non-repatriation basis under Schedule 4 of FEMA (Transfer or Issue of Security by Persons Resident Outside India) Regulations will be deemed to be domestic investment at par with the investment made by residents.
Government has undertaken a number of steps to improve Ease of Doing Business in India. Amongst the other important steps, Ministries and State Governments have been advised to simplify and rationalize the regulatory environment through business process reengineering and use of information technology.
These measures are expected to increase FDI, which complements and supplements domestic investment. Domestic companies are benefited through FDI, by way of enhanced access to supplementary capital and state-of-art-technologies; exposure to global managerial practices and opportunities of integration into global markets resulting into accelerated domestic growth of the country. Further, as FDI is largely a matter of private business decisions, global investors normally take time to assess a new policy and its implications in the context of a particular market before making investment.
This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
****
Increase in FDI Cap in Some Sectors
FDI policy is reviewed on an ongoing basis, with a view to making it more investor friendly. Significant changes are made in the FDI policy regime, from time to time, to ensure that India remains increasingly attractive and investor-friendly. Government plays an active role in investment promotion, through dissemination of information on the investment climate and opportunities in India and by advising prospective investors about investment policies and procedures and opportunities.
FDI up to 100% is allowed on the automatic route in most sectors/activities subject to applicable laws/ regulations; security and other conditionalities. Further, in various sectors, it is allowed up to the different limits, varying from 20% to 100%, subject to prescribed conditions. The detailed information is available in ‘Consolidated FDI Policy Circular of 2015’ at this Department’s website (www.dipp.nic.in).
This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.
****
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