India and world-2

INDIA AND NEPAL

India’s External Affairs Minister, Salman Khurshid, visited Nepal on 9th July 2013 at the invitation of the Minister for Foreign Affairs of Nepal, Madhav Prasad Ghimire. Minister of both the nation held official talks covering all feature of bilateral relations and issues of mutual interests. Indian side asserted that they are strongly committed to the success of Nepal’s peace process and institutionalization of democracy in Nepal in a constitutional and multi-party framework. India is encouraging the successful conduct of free and fair election for the Constituent Assembly-cum-Parliament on 19th November 2013.
Highlight of the Meeting is as follows:
Logistics for Constituent Assembly-cum-Parliamentary Election

·         India has agreed to provide all the logistical support for the security agencies and Election Commission of Nepal as requested by the Government of Nepal.

·         This comprises 764 different types of vehicles costing approximately NRs 800 million. The vehicles will be delivered to the Government of Nepal by October 2013. The two sides exchanged Letters to this effect.

Water resources

·         The Ministers reviewed the joint efforts against flood-related disasters, including the repair and maintenance works at major border rivers, especially Kosi and Gandak.

·         India has committed grant assistance of 181.37 million NRS under the bilateral Small Development Projects for flood protection works along Trijuga, Lkahndehi, Sunsari, Kankai, and Kaligandaki rivers and NRs 95.2 million along Gagan river.

·         Besides activating all the existing bilateral consultative mechanisms and maintaining the embankments of Kosi and Gandak under the respective bilateral agreements, India has provided grant assistance of Nepali 2.543 billion Rupees during the past three years for protection works on the Kamala, Lalbakya, Khando and Bagmati rivers.

·         For the current year, Indian announced an amount of 256.94 NRS million for this purpose, and a further amount of 374.47 million NRs will be made available later in the year.

Augmenting electricity supply

·         It is important to recall that to augment electricity supply from India to Nepal, particularly during the lean season, India has already implemented short-term grid connectivity projects (grant assistance of NRs 124.6 million), resulting in Nepal importing an additional 80 MWs of electricity through 14 different upgraded exchange points in the last lean season.

·         A further medium-term grid upgradation project (amounting to grant assistance of NRs 464 million) has been tendered which will enable a further drawing of between 120 – 175 MWs of electricity from India, whenever required. To supplement financing of the long-term cross-border grid connectivity from Muzaffarpur to Dhalkebar, India’s Eximbank is contributing U.S. 13.2 million Dollars.

Eximbank Line of Credit: Specific approvals have been obtained in June 2013 for Phase II of the Rahughat Hydroelectric Project, 220 KV Kosi Corridor Transmission Line Project, 132 KV Solu Corridor Transmission Live Project, and the 132 KV Modi Leknath Transmission Line Project, for utilising 175 million Dollarsor NRs 15.8 billion out of the existing 250 million Dolars Exim bank’s Line of Credit for Nepal. Approvals for utilisation of the balance amount, for the construction of roads within Nepal, are in the pipeline.
Trade and economic cooperation: It is worth mentioning here that India accounts for nearly two-thirds of Nepal’s foreign trade, 70% of Nepal’s exports, and almost half of its foreign direct investments.
The Government felt the need to continue consultations on measures to promote trade bilaterally and with third countries to optimize opportunities for Nepal’s economic growth, including on finalising legal and administrative arrangements for additional transit routes, revision of the Rail Services Agreement to enable the implementation of the long-standing Nepalese request for the movement of open box wagons and transit of bulk cargo movement on flat wagons, finalisation of the Motor Vehicles Agreement, energy banking and power trading, currency conversion facilitation, new routes for increased air-connectivity, and strengthening Nepal’s capacity forcertification for food and agriculture products exports by establishing testing and lab facilities along the India-Nepal border.
Development partnership: The Ministers reviewed progress of the bilateral development partnership programme, which includes large, cross-border connectivity and infrastructure projects, as well as community and grass-roots oriented Small Development Projects (SDPs) in the key areas of education, health and rural infrastructure.
India partners Nepal in capacity building and human resource development. This year, the number of scholarships offered to Nepalese students has nearly doubled to 3,000. The number of training programmes under India Technical and Economic Cooperation (ITEC) & Colombo Plan has also gone up to 230 from 100 last year.
The infrastructure projects include construction of four Integrated Check Posts (ICPs) for trade promotion and facilitation, 1450 kms of Terai Roads, and cross-border rail links at five locations.In the first phase, works have been taken up in two of the four ICPs (grant assistance of NRs 4.32 billion for the segment falling in Nepal), six segments of Terai Roads Project (totalling 605 kms entailing grant assistance of NRs 11 billion) and two of the five rail connections (grant assistance of NRs 10.4 billion). Under SDPs, of the 425 projects undertaken, 218 have been completed. The current year’s outlay for these development projects is NRs 6.08 billion.
Defence cooperation: India-Nepal defence ties include military educational exchanges, joint exercises, and supplies of military stores and equipment, as required by Nepal.
Following the successful completion of integration of former Maoists combatants into the Nepal Army (NA) and the decision of the Government of Nepal to resume imports of stores and equipment for NA, these materials, identified in the Bilateral Consultative Group on Security Issues, will be supplied to Nepal over the coming months (the immediate supplies sought are valued at NRs 1.76 billion).

INDIA AND NEPAL

Ministry of Tourism of India on 2 July 2013 agreed to a proposal from the visiting Tourism and Travel delegation from Nepal for joint publicity of India and Nepal as Tourist destinations in other countries. The Ministry also agreed to a suggestion for joint offering of Tour packages in third countries by tour operators of India and Nepal.
The Nepalese delegation sought India’s cooperation in the development of Hotel Infrastructure in Nepal. They also suggested joint promotion and development of Buddhist Tourism sites in both the countries. The Indian side suggested joint venture with Nepal in Himalayan and Adventure Tourism. The above agreement will help in improving the tourism infrastructure both in India and Nepal.

INDIA AND BANGLADESH

14th Meeting of the Home Secretaries of India and Bangladesh was held in New Delhi from July 19 to 22 July 2013. The meet of the home secretaries of the two nations was conducted with an aim of promoting and strengthening, the bilateral relations that exist between India and Bangladesh and to carry forward the relations further. The Indian delegation of Home Secretaries was headed by Anil Goswami, Union Home Secretary, Government of India and the Bangladeshi delegation was led by C. Q. K. Mustaq Ahmed, Senior Secretary, Ministry of Home Affairs and Government of Bangladesh. Earlier, on 18 July 2013 the 13th JWG meet on security issues was also held between the two nations, in which both the sides discussed upon the issues related to security, border management, incidents of deaths due to firing on the border, implementation of agreements, ratification of the land boundary agreement, visa and consular related matters, capacity building and others.
Issues and points noted and discussed during the meet of the home secretaries includes:

·         Home secretaries of both India and Bangladesh reaffirmed their commitment not to allow the territory of either country to be used for any activity inimical to each other’s interests

·         Satisfaction was expressed at the smooth operation of Coordinated Border Management Plan (CBMP) by both the sides, as CBMP has resulted in reducing the number of border incidents

·         The two sides also agreed to increase the frequency of coordinated patrolling with a view to curbing criminal activities along the border

·         Confidence was expressed between the two sides on coordinated patrolling for enhancement of cooperation between the border guarding forces of the two countries, and enable them to prevent the movement of criminals and manage the identified vulnerable areas with a view to prevent criminal activities, acts of violence and loss of lives along the border areas

·         Secretaries of both the sides appreciated DC-DM conference between Brahmanbaria district of Bangladesh and West Tripura district of India

·         Agreement was reached by both sides to sensitize the media about ground realities of border management

·         Agreement was reached at intensifying, the activities of the nodal points in different areas of cooperation that includes INTERPOL, drugs and human trafficking

·         Extension of cooperation for apprehension of wanted criminals and fugitives was agreed by both the sides

·         Home Secretary of Bangladesh urged for immediate tracking, arresting and handing over the killers of Bangabandhu, the Father of the nation of Bangladesh, Sheikh Mujibur Rahman and was assured from his Indian counterpart that all possible assistance in this regard

·         Bangladesh agreed to expand and strengthen further cooperation in sharing actionable intelligence in real time

·         Measures taken to expedite the verification and repatriation of prisoners who have completed their sentences were reviewed

·         Discussion on ratification of the LBA-1974 and the protocol signed in 2011 were made

·         Agreement on increasing the number of goodwill visits and cooperation in training on subjects like Cyber Crime, ICT, Forensic Sciences

·         Implementation of three agreements (Mutual Legal Assistance in Criminal Matters, Agreement on Transfer of Sentenced Persons and Combating Terrorism, organized crime and illicit drug trafficking) which were signed during the visit of Prime Minister of Bangladesh, Sheikh Hasina to India in 2010 was also noted by the two sides

The two sides also noted that the bilateral cooperation in the field of security and border management which was strengthened with by the signing-up of the four agreements pertaining to security cooperation including the Extradition Treaty.

INDIA AND ALBANIA

The Union Government of India and Government of Albania on 8 July 2013 signed an Agreement for Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to the Taxes on Income and on Capital (DTAA). The agreement was signed to provide tax stability for the residents of both the nations. It would also facilitate mutual economic cooperation between the two countries. The signed agreement would also stimulate the flow of investment, technology and services between India and Albania. The agreement incorporates provisions for effective exchange of information between tax authorities of the two countries, which also includes exchange of banking information and supply of information without recourse to domestic interest.
Major Points of the Agreement Signed

·         Business profits would be taxable in the source state if the activities of the enterprise constitute a Permanent Establishment (PE) in that state. It provides fixed place PE, building Site, Service and Agency PE as well as Construction and Installation of PE.

·         Para 2 of Article 9 of the agreement incorporates concerns related to Associated Enterprises and thus involves recourse to Mutual Agreement Procedures for relieving double taxation in cases that involves transfer pricing adjustments

·         The signed agreement makes Dividends, Interest and Royalties & Fees for Technical Services income taxable in both the countries, the country of source and residence. The withholding rates of taxation for dividend, interests and royalties & fees for technical services of 10 percent each will help in promoting investment, technology and technical services flow between the two nations.

·         The Agreement also has the provisions for effective exchange of information between tax authorities of the two counties in line with latest international standard. It includes exchange of banking information and supplying of information without recourse to domestic interest.

·         An article on the Assistance in Collection of Taxes is also mentioned under the Article and includes provisions to take measures on conservancy. It includes anti-abuse (limitation of benefits) provisions to ensure that the benefits of the Agreement are availed of by the genuine residents of the two countries

INDIA AND MONGOLIA

India on 9 July 2013 agreed to co-operate with Mongolia in developing its renewable Energy Sector and Human Resource Development. The agreement between the two nations was reached during a meet between the Farooq Abdullah Union Minister for New and Renewable Energy and Mongolian President Tsakhia Elbegdorj at Ulaanbaatar during his visit to Mongolia. Farooq Abdullah was on a visit to Mongolia to represent India at the oath taking ceremony of Elbegdorj, who has been re-elected as the President for his second four-year term. During his visit, Abdullah also handed over the letter of felicitation to Elbegdorj from President of India, Pranab Mukherjee lauding his personal vision and commitment towards the comprehensive partnership between the two countries and to invite him to visit India.
During his visit to Mongolia, Abdullah also met Foreign Minister of Mongolia Lu Bold and Minister of Environment and Green Development of Mongolia, Sanjaasuren Oyun.
India-Mongolia Relations
The bilateral relations between India and Mongolia has expanded in recent past and at present it covers cooperation in defence and strategic issues along with educational and cultural exchanges. To give a new boost to the bilateral relations, the President of Mongolia Elbegdorj selected India as the first destination for foreign visit after taking over as President of Mongolia for his first term, in 2009. The Union Government’s decision to depute a senior Cabinet Minister to the President’s inauguration is a signal of importance that India places Mongolia and towards further strengthening of bilateral relations with Mongolia. Keeping apart the political relations, the two nations share a close linkage with each other in terms of civilization and culture as Mongolia mainly is a Buddhist country. Several Mongolians travel to India for spiritual, educational and medical purposes.

INDIA AND IRAQ

India and Iraq on 8 July 2013 signed a pact to enhance co-operation in energy security, bilateral trade & commerce, infrastructure and others. The agreement was signed between the Union Petroleum Minister Veerappa Moily and his counterpart from Iraq, Abdul Karim Luaibi at the end of the India-Iraq Joint Commission on technical co-operation in Baghdad.
As per the agreement, in energy sector, Iraq will supply more crude oil to India to meet the growing needs of energy in the country. Petroleum Minister M Veerappa Moily is leading a 28-member delegation to Iraq to participate in the 17th India-Iraq Joint Commission meeting in Baghdad. The delegation reached Baghdad on 6 July 2013. Earlier, Salman Khurshid, the Union External Affairs Minister was on a two-day visit to Iraq from 19 to 20 June 2013, which was the first visit of an Indian Minister to Iraq after 1990 visit of Inder Kumar Gujral, during his tenure as Union External Affairs Minister.
India Iraq Economic Cooperation Council
About the Council: India Iraq Economic Cooperation Council was established under the patronage of the Embassy of the Republic of Iraq in Delhi as a non-profit organization in India. This council was established with the aim of helping businessmen on both sides to enhance and diversify economic and commercial relations between the two countries.The MoU to establish the Council, with its chapter in both Delhi and Baghdad, was signed on 22 March 2010 during visit of a six member delegation from Iraq to India from 22 to 24 March 2010.
Why a country specific council for Iraq?

·         Indian companies were present in Iraq before the war broke out and now in the reconstruction phase, they are required to revive their old contacts.

·         Security scene in Iraq is getting better day by day and there seems to be more international confidence in the stability of the country.

·         There will remain continuous flow of revenues in Iraq as the country is sitting on the world’s third largest oil reserves of at least 115 billion barrels. The war ravaged country is trying to boost its revenues amid unstable oil prices by offering more oil and gas fields to international companies for development.

·         Rebuilding Iraq is focusing on brand new horizon of business prospects that only unexplored market can offer, showcasing full range of infrastructure projects, products and services. Indian business is well placed to take advantage of the opportunities that exist in Iraq today.

·         With normalcy fast returning, Iraq is keen to focus on rehabilitation of its economy. Interestingly, Iraq has sufficient financial resources to undertake its ambitious development plans. Iraq is expected to accord priority to rehabilitate oil refineries, power plants, telecommunications, hospitals, roads, railways, bridges etc. Besides these projects, Iraq is in need of food, medicine and other items of daily necessity. Indian companies are uniquely placed to participate in the projects/services under the reconstruction phase of Iraq.

INDIA AND TANZANIA

India and Tanzania on 9 July 2013 signed agreements on bilateral cooperation in different sectors that includes agriculture, health and education, mines and minerals. All the agreements were signed between the Union Minister of State for External Affairs, Preneet Kaur and the Tanzanian Minister for Foreign Affairs and International Cooperation, Bernard K. Membe at Dar es Salaamduring the 3-day visit of Preneet Kaur to Tanzania. During the 3-day visit to Tanzania, Preneet Kaur co-chaired, theIndia - Tanzania Joint Commission Meeting. She also met with the President of Tanzania, Dr. Jakaya M Kikwete and reviewed the current level of development partnership between the two countries. President Kikwete assured that his country would support Indian aspiration for a permanent seat in a reformed United Nations Security Council.
As per the latest reports, economic engagement of India with Tanzania has gone up to a cumulative of 1546.56 million dollars in 2011. India is the third biggest investor in Tanzania with 305 projects.

INDIA AND BELARUS

India and Belarus signed a protocol on 24 July 2013 to enhance trade ties during the sixth session of the Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation held in New Delhi.
Highlights of the Meeting

·         The meeting was held in the direction for strengthening trade and economic relations between the two countries.

·         The Belarusian side recommended India to determine an Indian counterpart deputed to negotiate on the long-term cooperation agreement, take decisions and signing of the agreement for the full volume of the deliveries.

·         Belarus asked India to recognise Belarus as a market economy country. The Indian side responded that the matter is under active correspondence between the sides. India is considering the issue of grant of market economy status to Belarus within the framework of India’s Antidumping Rules.

·         The Belarusian side flagged the issue related to the introduction and long duration of action of antidumping duties on a number of products of the petrochemical complex: tire cord fabric manufactured by JSC Grodno Azot and acrylics fibers manufactured by the plant Polymir of the OJSC Naftan.

·         Both the sides also agreed to create a Certification Centre of Belarusian companies and professionals in the field of software at the earliest possible time.

·         The Belarusian Side will provide a draft concept of the Certification Centre of Belarusian companies and professionals in the field of software to initiate negotiations with the Indian Side.

·         Belarus advocated for revocation of the antidumping duties on these goods and expressed the intension to maintain the export of the products to India, mostly of interest to Indian consumers.

·         The Indian side stated that the matter is being examined positively and the official decision would be taken before the next session of the Commission.

Both the Countries also signed a protocol after the Meeting as per which both the sides will take necessary steps to sign the Memorandum of Understanding between the Ministry of Textiles, India and the Belarusian State Concern for Manufacturing and Marketing of Light Industry Goods (concern Bellegprom) on Cooperation in the Field of Textiles, Clothing and Fashion Industries. The Belarusian delegation proposed to hold the 9th meeting of the Business Council “India-Belarus” in 2013 to promote the collaboration of business representatives, as well as agreed to define the dates of the National Exhibition (exposition) of the Republic of India during 2013-2014 in Minsk