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Revised DTAA with the Philippines soon: Pranab
- Finance Minister Pranab Mukherjee on Monday impressed upon the Philippines the need for a transparent arrangement between the two countries based on a legal framework for mutual exchange of information on banking and tax related matters.
- A revised DTAA (Double Taxation Avoidance Agreement) between the two countries could be signed in January next year as negotiations were already on for revamping the existing convention on avoidance of double taxation and prevention of fiscal evasion with respect to taxes and income.
ADB's role in infrastructure building lauded
- Addressing delegates at the ADB-India partnership silver jubilee function here, Mr. Mukherjee said: “In the medium- to long-term, India remains firmly on a high GDP growth path of 8.5-9 per cent.
- The increase in agriculture production on a sustainable basis is a long-term solution to the problems of availability as well as high and fluctuating food and commodity prices
- The ADB, Mr. Mukherjee said, should focus on issues that help in linking farms to markets and promote research activities and efforts in improving productivity of dry-land farming, efficient use of water, rain-fed irrigation, development of drought-resistant varieties of seeds and other similar concerns.
- “The XII Plan (2012-17) has an ambitious target of infrastructure investment estimated at $1 trillion,” he said and highlighted the role that the ADB had played in this regard by way of valuable and technical assistance in public-private partnership for development of the sector.
- We hope ADB's assistance in developing clean and alternative sources of energy and technology to expand energy efficiency measures on all fronts would be scaled up
- Mr. Mukherjee said that despite sustained high growth, Asia was not on an “autopilot mode” and would require careful steering and direction.
- Mr. Mukherjee exhorted the ADB to take up South-South cooperation as a priority and become a vehicle for countries to share their experiences on inclusive growth and poverty alleviation.
Flexible modules needed for expanding civil aviation: Pratibha
- President Pratibha Patil on Monday sought “flexible business modules” for expansion of the aviation industry.
- To achieve this, governments must continually negotiate new bilateral treaties, to allow for and expand access to new and emerging markets for their carriers,” Ms. Patil said inaugurating the fourth International Civil Aviation Negotiation (ICAN) conference
- The potential for growth of civil aviation in India is huge with recent estimates suggesting that domestic air traffic will touch 160-180 million passengers annually in the next 10 years
- On the occasion, the President released coins to commemorate 100 years of Civil Aviation in India
Supporting the export effort
- The government's new “incentive” package for exporters is meant to help some of them cope with the looming uncertainties in the global markets.
- Taken along with the interest subsidy of 2 per cent announced by the Reserve Bank of India a couple of days earlier for labour-intensive industries such as handicrafts, handlooms, and carpets and for small and medium exporters, the cost will add up to at least Rs.1,700 crore.
- It is said that the new measures are part of the Foreign Trade Policy (2009-14)
- foreign trade policy, which seeks to reward exporters who move into newer markets in Latin America, Africa, and the Commonwealth of Independent States (CIS), with an additional one percentage point duty credit.
- For many years now, the government's trade policy has aggressively promoted the diversification of India's exports to non-traditional markets and products.
- exports grew by 54.2 per cent over the same period a year ago to touch $134.5 billion. Such a scorching pace will be hard to sustain
- India's traditional export markets — the United States and Europe — which account for about 35 per cent of the total, are facing uncertain times
- The export performance has been commendable also because it has come in the face of large uncertainties caused by the fluctuating rupee and rising interest rates.
- merchandise trade deficit has gone up to $35.54 billion from $31.38 billion during the first quarter of this fiscal year. That is another reason why export promotion ought to remain a top priority.
