Business with India

WTO deadlock ends: India, US strike deal, boost for Modi

November 13, 2014November 14, 2014 - by Shweta Aggarwal

Signalling a triumph of the negotiating prowess of the Narendra Modi government, India and the US have managed to strike a compromise formula on food subsidies, which paves the way for salvaging the stalled World Trade Organization (WTO) deal on easing of customs rules.
The mid-way formula that ended months of impasse in global trade negotiations envisaged an indefinite “peace clause” on food security until a permanent solution is found, a key demand of India for which Indian negotiators played hardball, resisting concerted pressure from developed countries. A “peace clause” provided legal security to member countries and protects them from being challenged under WTO’s subsidy caps. In India’s case, it effectively means that the country can continue with its food security programmes without attracting WTO penalties pending a permanent solution to the contentious issue of subsidies.

Economic diplomacy: India seeks ASEAN investments, backs regional trade pact

November 12, 2014November 12, 2014 - by India Writes Network

With the business of diplomacy being increasingly business, India’s reform-minded prime minister has robustly pitched for increased investment and deployment of expertise from ASEAN countries in his project of urbanisation and economic renewal in Asia’s third largest economy.
Attending his first India-ASEAN summit in Myanmar’s capital November 12, Narendra Modi alluded to “a new economic journey in India” and sought greater investments from ASEAN countries in the priority sectors identified by his government: infrastructure, manufacturing, trade, agriculture, skill development, urban renewal, smart cities.
“Make in India is a new mission. We are placing as much emphasis on ease of doing business in India as we are on making policies attractive. I invite you to this new environment in India. Indian companies are also keep to invest in and trade with ASEAN,” he told the leaders of the Association of Southeast Asian Nations.
Underlining speedy decision-making and speedy action as his driving mantra, Mr Modi assured the ASEAN leaders that “there will be major improvement our trade policy and environment.” “We will also move ahead with connectivity projects with ASEAN with speed,” he said at the swanky Myanmar International Convention Centre.
Significantly, Mr Modi exhorted the two sides to conduct a review of India-ASEAN free trade agreement in goods “to improve it further and make it beneficial to all.” “I also urge that the FTA on Service and Investment be brought into force at the earliest,” he said.
India and ASEAN are looking to scale up bilateral trade to $100 billion by 2015 and double that volume by 2022. The two-way investments are on an upswing: ASEAN investments in India over the last eight years amounted USD 27.9 billion, and Indian investments in ASEAN reached $32.4 billion.

India-Russia talks: Setting the stage for Putin’s visit to India

November 4, 2014November 5, 2014 - by Manish Chand

Russian President Vladimir Putin is expected to be in India early December, much after India’s new prime minister would have held summit meetings with the leaders of the US, Japan, China and many other countries. Is Moscow going down a notch on India’s foreign policy radar under the new dispensation in New Delhi?
This kind of scepticism is voiced in some sections of the media and commentariat, but it would be a gross misreading of the Modi government’s foreign policy priorities. The fact that the Modi-Putin summit meeting is happening after other Modi’s headline-hogging meetings with world leaders does not mean anything; on the contrary it reflects enduring trust a comfort factor in the India-Russia relationship which has no parallel.
For Moscow remains pivotal to India’s core national interests, and the shifting geopolitical realities of the second decade of the 21st century is not going to change this plain fact. This centrality of Moscow’s place in India’s foreign policy calculus will be reflected in wide-ranging talks between Russia’s Deputy Prime Minister Dmitry Rogozin and India’s External Affairs Minister Sushma Swaraj in New Delhi November 5.

Japan’s SoftBank bets $10 billion on India

October 28, 2014October 28, 2014 - by India Writes Network

Signalling confidence in the India growth story under the new Narendra Modi dispensation in Delhi, Japanese telecom and internet titan SoftBank has unveiled a mammoth $10 billion investment plan for …

India’s FDI dreams

October 18, 2014October 18, 2014 - by India Writes Network

Billions of dollars in Foreign Direct Investment (FDI) have been assured to India thanks to Prime Minister Modi’s successful foreign tours and the visit of Chinese President Xi Jinping. Hopefully countries with more wealth and technology than us will help us create jobs. But in his efforts at gathering FDI, the Prime Minister is not any different from the previous government which also staged many road shows with union and state ministers, politicians and even the prime minister going abroad to woo foreign investors.

Everyone knows the advantages of FDI, but there are disadvantages also. One has to remember that FDI in the past has been capital intensive and not labour intensive. Foreign companies tend to use more technology to retain their competitiveness and flexibility than go for hiring more workers. Most are afraid of encountering labour problems. Millions of jobs, however, are needed in India and therefore there has to be a policy of encouraging labour intensive FDI. In mining industry, there is a danger of FDI harming the environment in their extractive manoeuvers. Hence India has to study carefully what kind of FDI it wants.