Bosch initiates new steps to expand car service and automotive parts centres in the Gulf
Bosch president, Dr. Eugen Konrad, visits UAE, Saudi Arabia and Kuwait, to oversee operations
October 30, 2003
DUBAI -Bosch, one of the leading global innovators and suppliers of automotive parts, has embarked on an expansion drive in the Middle East, by opening more car service centres and automotive parts stores across the region. The German-based global leader's expansion plans were reflected in the recent visit by the Bosch Automotive Aftermarket President, Dr. Eugen Konrad, to the key Arabian Gulf markets of the UAE, Saudi Arabia and Kuwait. He was accompanied by Volker Bischoff, General Manager for Middle East and Africa.
Dr. Konrad's first stop was the Bosch Car Service, the 40-bay workshop for all brands of cars that was opened in Abu Dhabi in February 2003 by the Bosch Automotive Agent in U.A.E., Central Motors. Located in the Mussafah industrial area of Abu Dhabi, the new service centre has acquired many customers in a short period of time. Further expansion steps have been already taken by Central Motors.
Dr. Konrad then proceeded to Riyadh to inaugurate a new branch of Juffali Auto Parts Company (JAPCO), the biggest Bosch agency in the region, with a long association dating back to 1964.
"The Automotive Aftermarket Division of Bosch is the leading brand for spare parts, diagnostics and workshop concepts," said Dr. Konrad, while speaking in Riyadh. "We are expecting the car population to grow in average by 3.4 per cent in Asia until 2010, much higher than in Europe and America. Saudi Arabia, our biggest Middle East market, is forecast to grow by 2.1% per annum in the same period. My short trip to the Gulf has reinforced our belief that the Middle East offers a big growth potential for Bosch Group.
"With our 43 subsidiaries and 43 representatives, Bosch Automotive Aftermarket is well represented on every continent," said Dr. Konrad. "We prefer to be close to our customers to take into account local market requirements and to offer quick and flexible support. An example of this is our liaison office in Dubai which was opened in February last year."
Sounding a word of caution for manufacturers of counterfeit automotive parts, Dr. Konrad said: "We are not going to helplessly watch the illegal automotive parts trade flourish. We are going to take serious steps to combat the activity."
Dr. Konrad also attended the soft opening of the Bosch Car Service centre in Kuwait, the second such facility in the Arabian Peninsula after Abu Dhabi. Bosch Automotive Agent Al Qurain Automotive Trading has invested in this Bosch car service workshop and has announced plans for further expansion in association with partner workshops.
"The visit of Dr. Konrad shows the great importance of our markets in Middle East for the global strategy of Bosch", said Jacek Siwinski, General Manager, Bosch Automotive Middle East, Dubai. "There is a growing demand for original-equipment-quality spare parts and professional services in this region. Car owners are increasingly insisting on genuine spare parts. These encourage Bosch and it's Agents to do more investments and to open new service centres and workshops in the region. We are very confident about our strategy and expertise to develop the business successfully. Mr. Konrad's visit has given us additional confidence and motivation for our work."
The Bosch Group is one of the world's leading suppliers of automotive equipment. The Bosch Automotive Aftermarket business division (Bosch AA) deals with the global supply of replacement parts and information for Bosch products and systems, the distribution of shop and auto accessories, and worldwide customer service. Bosch AA delivers to 132 countries through regional companies, foreign representatives, or customer service centres. Its distribution centre warehouses more than 150,000 different items: diesel and petrol injection parts, sparkplugs, filters, starters, generators, brakes, headlights, and many other automotive supplies. Bosch Automotive has been operating in the Middle East for almost 40 years. Since then, the Automotive after sales business has maintained a significant presence in Middle East markets.
AAME DOUBLES IN SIZE FOR 2003 REGION'S BIGGEST AUTOMOTIVE AFTERMARKET EXPO
US $11 BILLION GCC AUTOMOBILE MARKET
Dubai --January 6, 2003 Automotive Aftermarket Middle East (AAME) - the Middle East's biggest trade show for automotive parts, accessories, tyres, batteries and garage equipment - will double in size for 2003. Organisers International Expo-Consults (IEC) says AAME 2003, to be held at the Airport Expo Dubai from March 25-27, will occupy 3,000 square metres and feature over 250 companies from more than 30 countries across North and South America, Europe, the Middle and Far East and Australasia. The show will target the GCC spare parts market that is valued at over US $11 billion.
To date, IEC says, 10 countries have contracted for national or industry pavilions at the show. They are Australia, Italy, India, China, Spain, Pakistan, Taiwan and, for the first time, the UK, Germany and Turkey.China's pavilion, featuring 40 companies, will quadruple in size to 424 square metres, compared with 2002, and the Taiwanese pavilion, hosting 34 companies, will be nearly three times larger at 278 square metres. Thirty companies will be housed in Turkey's 278 square metres debut pavilion, while 15 companies will occupy Germany's 216 square metres pavilion.
Regional demand for spare parts and accessories is being fuelled by strong growth in new car sales. Industry analysts expect the number of vehicles to grow by 5 to 8% in 2002, based on half-year figures. Dubai alone imported 100,132 vehicles in the first six months of 2002, a 43.7% increase over the same period in 2001. Elsewhere in the region, new vehicle sales in Saudi Arabia exceed 100,000 units annually; in Kuwait one-in-two people own a car and in Oman, vehicle registrations topped 500,000 for the first time in 2001.
"The rapid growth in the number of vehicles on the region's highways has resulted in increased demand for genuine spare parts and accessories. AAME 2003 will feature the best brands from around the world, many of which will be making their regional debut at the show," said Mohammed Falaknaz, Vice President, IEC. "In addition, Dubai is the hub of the Middle East's re-export business, with between 50 and 60% of aftermarket imports being re-exported. AAME provides a key gateway into this market that is worth up to US $1.5 billion and growing at 20% per annum. "With a visitor footprint taking in the entire Middle East and North Africa, AAME 2003 will provide exhibitors with an unparalleled opportunity to target customers in one of the fastest growing spare parts markets in the world," said Falaknaz. (keralamonitor.com)
Prudential ICICI Mutual Fund launches ‘SPIcE’
January6, 2003, Mumbai: SPIcE is a hybrid product having features of both an open-ended mutual fund such as diversification, lower transaction costs as well as those of an exchange-listed security like intra day trading, listing at the BSE/DSE.SPIcE can be bought and sold like any equity share on the BSE terminal through a stockbroker. The minimum lot size is one unit of SPIcE, effectively; a retail investor can buy one SPIcE unit and hold the same in his Demat account just like any other security.
The price of one SPIcE unit will be equal to 1/100th of SENSEX value. For example, if the current SENSEX is at 3100, the price of one SPIcE unit will be Rs. 31. The scheme will be managed by Prudential ICICI and listed on both the BSE and DSE.
Key Advantages of SPIcE
Instant exposure to a well-diversified portfolio of 30 quality stocks forming part of SENSEX
Buying and selling of SPIcE units on a real-time basis just like any other equity share
Since once SPIcE unit is equal to 1/100th of SENSEX, the minimum investment for a retail investor is as low as Rs. 31 (3100/100)
The price of each unit of SPIcE would move in tandem with the SENSEX making the whole process extremely transparent
No sales load, normal brokerage commissions and low management and sponsor fees apply
Key Applications of SPIcEEquitizing cash
Cash flow management
Diversifying Sector Exposure
Shorting or Hedging Index Exposure
Arbitrage between SPIcE and basket trading and between SPIcE and Index Futures
An important feature of SPIcE like most Exchange Traded Funds is the creation and redemption process. While the majority of the investors will trade SPIcE units through their stockbrokers on the stock exchange, Authorized Participants (i.e. brokers, institutions, etc.) will be eligible to create or redeem SPIcE units directly with the Fund by exchanging a basket of SENSEX securities. Such a process helps in maintaining parity between the traded price of a SPIcE unit and its NAV.Globally, there are above 250 ETF’s listed and traded across the world with assets under management of above US$ 100 billion. In the US, the major ETF’s include SPDRs (linked to S&P 500 Index), QQQs (linked to Nasdaq-100 Index and Diamonds (linked to DJIA). More than 60% of the trading volume on American Exchanges is in ETF’s. (keralamonitor.com)
ICICI Bank proposes to acquire Transamerica Apple Distribution Finance Private Limited
Prudential ICICI Asset Management Company (PIAMC) is investment manager to the largest private sector mutual fund in the country, the Prudential ICICI Mutual Fund. PIAMC enjoys the strong parentage of ICICI Bank Ltd., a well-known and trusted name in financial services in India and Prudential PLC, one of UK’s largest players in the Insurance and fund management business. PIAMC has 26 centers all over the country to service investors and enjoys the trust of over 5.5 Lakh investors. Its diverse product portfolio comprises of debt, equity & balanced funds.ICICI Bank proposes to acquire Transamerica Apple Distribution Finance Private Limited
ICICI Bank Limited (NYSE: IBN) proposes, subject to Reserve Bank of India approval, to acquire the entire paid-up share capital of Transamerica Apple Distribution Finance Private Limited (TADFL), a financial services company. January 4, 2003: The cost of acquisition is estimated at Rs. 74 crore and would be finalised on completion of audit of the accounts of TADFL for the period April - November 2002, or such other period as agreed.TADFL is primarily engaged in providing distribution financing in the two-wheeler and tractor industry segments, and loans to retail customers for purchase of two-wheelers. Retail finance is a key focus area for ICICI Bank and the acquisition of TADFL is expected to supplement ICICI Bank’s retail franchise.
TADFL is a 70:30 joint venture between Transamerica Distribution Finance, USA (TDF) and Apple Credit Corporation Limited (Apple). TDF is a wholly-owned subsidiary of Transamerica Finance Corporation, USA (TFC) which in turn is a subsidiary of Aegon N.V., a Netherlands based global insurance major. JM Morgan Stanley Private Limited was the financial advisor to TDF on this transaction. Total assets of TADFL were Rs. 217.9 crore at March 31, 2002. As per the audited accounts for the year ending March 31, 2002, TADFL’s profit after tax was Rs. 4.6 crore.
ICICI Bank is the largest private sector bank in Indian and a leading player in the retail finance market. Total assets of ICICI Bank were Rs. 1,04,110 crore at March 31, 2002. The Bank has a network of over 400 branches and extension counters, and 1,250 ATMs. (keralamonitor.com)SOMALIA: Peace talks resume in Eldoret
NAIROBI, 6 January (IRIN) - The Somali national reconciliation conference resumed in the Kenyan town of Eldoret on Monday after a two-week break, a source close to the talks told IRIN. The talks, which opened on 15 October under the auspices of the regional Inter-Governmental Authority on Development (IGAD), adjourned for the Christmas holidays and the 27 December Kenyan elections. The talks would resume "in earnest following the departure of surplus delegates", said the source. The Somali parties have agreed to reduce the number of delegates from over 700 to 400. "There are people still insisting that they will stay, even though their names have been struck off the list of delegates," the source said.
According to an IGAD source, the organisers are keen to transport the surplus delegates home due to financial constraints. "Simply put, we don't have the financial resources to cater for them," he said. "Hopefully they will leave amicably, and the problem will be resolved by today or tomorrow." Sources said once the extra delegates had left, the talks would move into phase three which includes discussion on the contentious issue of power-sharing and the establishment of an all-inclusive government. (keralamonitor.com)
ETHIOPIA: Interview with British Ambassador Myles Wickstead
ADDIS ABABA, 6 January (IRIN) - Myles Wickstead is the British Ambassador in Ethiopia. Here he tells IRIN about the UK's willingness to increase military aid to Ethiopia, how the country could provide peacekeepers for the United Nations and why the UK government is shifting towards Direct Budget Support in Ethiopia.
QUESTION: Can you explain what has prompted Britain's large increase in aid to Ethiopia?
ANSWER: Our recent relationship has been characterised by a strengthening across the board in diplomatic terms, defence terms, trade terms and also in terms of development assistance. We are looking to move to a development assistance framework of around GBP 30 million per year - more than double what it is at the moment. I believe within three or four years there is a very
real prospect of us doubling that again as long as the enabling environment remains right. What we are keen to see is that Ethiopia is really serious about tackling poverty. We believe it is.Q: What does strengthening defence with Ethiopia involve?
A: We held a very recent course with the military, supported by the British Ministry of Defence and Cranfield University. The broad theme of this was the role of the military in a democracy. And it is very important in a country like this that the army has a clear sense of its role. Ethiopia is a significant regional power. Ethiopian troops ought to be used in regional peacekeeping operations, in peacekeeping operations in western Africa and indeed in peacekeeping operations around the globe, operating under a UN framework. They are competent, they have
showed their abilities, the government is holding defence spending down - it wants a leaner, trimmer, but more efficient defence force and I think that anything we can do to help with that will be very positive and that will give the Ethiopian defence forces the ability to perform this broader role.Q: Is the door still open to providing military equipment?
A: I think the whole international community had various sanctions, arms embargoes in place during the conflict between Ethiopia and Eritrea. Those sanctions are no longer in place and I think we would want to consider any requests very much on their merits. We would have to be assured of course that any such equipment was being provided only for defensive purposes. We would want to look very carefully at the overall security situation in the region. Our overall objective, which I believe is shared by the government of Ethiopia, is to see a more peaceful and more stable Horn of Africa. So my hope is that the need for the provision of this sort of equipment becomes unnecessary.
Q: The EU said the EPRDF [ruling Ethiopian People's Revolutionary Democratic Front] is stifling opposition in the country. What is the British view on this?
A: The EU statement was intended to be a rather balanced view of things, paying due tribute to areas in which the EU felt significant progress had been made, but also putting the government on notice that there are certain things we want to see happening which perhaps at the moment aren't happening. We are very encouraged by the dialogue that has been opened between the government and the private sector, the government and the media, the government and academia. That dialogue has not yet opened up in a significant way between the government and the opposition. That is partly because the opposition itself has been divided.
The fact that the government is to have discussions - albeit indirect - with the opposition, in an initiative organised by the Inter Africa Group over the next couple of weeks, is a positive development.
Q: Britain is moving towards Direct Budget Support. What checks and balances are in place concerning accountability, democracy and human rights?
A: What we are interested in is seeing Ethiopia make progress towards the Millennium Development Goals, increasing its health expenditure, increasing its expenditure on education, getting more children into schools, getting more very young children vaccinated. This lies at the heart of their poverty reduction strategy, and we are going to hold them to that. If we are satisfied with their performance at the end of the year we will say: 'Here is your contribution for next year'. The mechanisms for delivering direct budgetary support are further complicated by the decentralisation process, which essentially means regions will have a great deal more control and power over how they spend their budget - they will be able to take decisions over whether they have a new road, school or hospital.
Can we hold central government accountable for those decisions, or do we have to work direct with the regional authorities? The truth is we haven't quite worked out how this is all going to work. How, if we put money into the central budget, can we be sure the regions are using it for the purpose we want them to use it for? These are quite hard questions and ones that we will be addressing with the government in January when we will be holding development talks in Addis Ababa. We are absolutely convinced that the direction of moving away from projects towards more Direct Budget Support is the right one.
Q: Does Direct Budget Support sound the death knell for non-governmental organisations?
A: I think the government has made clear it sees NGOs as playing potentially a very important role at grass roots level in delivering health, education and other interventions. The issue perhaps is what is the role of the international NGOs in this, because increasingly government is working with indigenous NGOs. When that happens the role of international NGOs becomes less certain. My own view is that they will still have a very important role to play, not least in capacity-building, advocacy and raising resources from people in western countries.
Q: How would the killings in Tepi and Awassa [last year in southern Ethiopia when security forces opened fire on protesters] affect the British government's decisions surrounding Direct Budget Support?
A: The key thing about Direct Budget Support is that we must have confidence about what the government is doing in its economic programmes, but also in creating a political environment in which all parts of the population can enjoy the benefits of development. The government is committed to decentralisation, and part of the consequence of that is likely to be a disturbance of the existing local political and economic power structure in various places. It would be wonderful if there were no further incidents such as those that happened in Tepi and Awassa, but under these circumstances they may recur from time to time. Where such incidents occur, they must be investigated swiftly and the due process of law brought to bear at once.
We believe the government has listened carefully to the concerns of the international community about those particular incidents and responded rather positively. Arrests have been made. We
shall continue to watch this carefully. But we have to take a balanced approach to this, so that as soon as one incident happens we shouldn't switch off the tap.Q: Are you confident that they can spend the money, given that the National HIV/AIDS Secretariat spent just a tiny fraction of World Bank money?
A: There was a lot of money that went into the system, and the mechanisms in the secretariat and countrywide were not in place to be able to deliver that. I feel a lot more optimistic over the last three months that that problem is being addressed. We are now beginning to see those very substantial resources getting to the places where they are most needed. The capacity issue is a very significant one. If the government lacks a degree of capacity at the centre, how much more will that capacity be lacking at the regional level. We think the government has made some very serious efforts over the last year or so to address those capacity constraints.
Q: Is it necessary to speed the process of sensitisation regarding territorial changes with demarcation of the border with Eritrea?
A: I think we might well need to speed it up. I think one of the problems is that the Military Coordination Commission (MCC) has not met for some time, but did so recently. That is a significant step forward and I am sure that an important part of their discussions over the next two or three months will be about how to deal with this problem. How do we make sure that tensions are not raised? One important element of this will be that both governments prepare their populations along the border for the fact that there may be transfers of territory in certain areas as a result of the demarcation process.
Q: Do you agree with USAID's Famine Early Warning System (FEWS) that the Ethiopian government should contribute more food aid itself?
A: Whether the Ethiopian government itself should be contributing 50,000 tons or 100,000 tons or 200,000 tons is a matter for discussion. The truth is that what they spend on food, given their very limited resource base, will mean less to spend in other ways, on longer-term health projects, education projects etc. As long as we are convinced that the government is doing what is says about putting more resources into health, into education, into the social sectors, that it is holding down defence expenditure, then to be honest with you, I don't mind whether they put in 45,000 tons or 75,000 tons. They must play their part, but if the very large food gap of 1.5 million tons is to be filled, they will have to look to the international community. That is what they are doing, and the international community is responding. If that continues to happen, I remain convinced that this serious situation need not develop into a crisis. (keralamonitor.com)
DRC: Another 35,000 displaced by ongoing fighting
NAIROBI, 6 January (IRIN) - Some 35,000 people fled heavy artillery fire around Makeke, on the western edge of Ituri region in North Kivu Province of northeastern Democratic Republic of the Congo, to Beni on 31st December 2002, according to Medecins Sans Frontieres (MSF).
"We see only part of the displaced population," Philippe Hamel, the MSF head of mission, said. "We fear that in total there might be over 155,000 displaced people in the areas between Butembo, Beni, Mambasa and Komanda alone."
Ongoing fighting and violence in the region were preventing MSF medical teams from accessing a large part of the population, the organisation reported, with tens of thousands of people remaining beyond reach. Dispensaries set up in early December to cater for 25,000 people were now stretched to serve 60,000. The health posts that had recently been reopened were now operating "far beyond full capacity", MSF said, adding that it was in the process of setting up hospital tents.
In less than a month, MSF teams had treated 33 children suffering from acute malnutrition and 13 rape victims. Moreover, measles had broken out in Mangina, where MSF said it was now vaccinating all patients during consultations. Meanwhile the leader of rebel Rassemblement congolais pour la democratie-National, Roger Lumbala, had said the two priests his organisation abducted on the 31 December would "soon be released", the Italian missionary news agency, MISNA, reported on Monday. Lumbala had described the two - an Italian and a Congolese national - as his "guests" in Mambasa, a town under the control of the Mouvement pour la liberation du Congo. (keralamonitor.com)
SUDAN: More work needed to achieve peace, think tank says
NAIROBI, 6 January (IRIN) - As the next round of talks aimed at ending 19 years of conflict in Sudan draws near, Sudan's warring parties are still reluctant to take the necessary decisions leading to conditions for peace in the country, a UK-based think tank has said.
Justice Africa, an organisation which works on peace and security issues on the continent, has urged the Sudanese government and the rebel Sudan People's Liberation Movement/Army (SPLM/A) to heed the consolidated pressure for peace in order to reach a lasting solution to the conflict.
"Peace hurts," it said in a briefing note. "The Machakos [peace] process has reached a stage at which the two parties must make serious political decisions...Both sides are vigorously criticising the mediators, in precise proportion to their level of activism."
The next round of talks, expected to begin on 15 January, are due to touch on the issue of disputed regions not geographically in the south, such as Abyei, the Nuba Mountains and Southern Blue Nile.
During the last round of talks, which ended in November, negotiations revolved mainly around issues of power and wealth-sharing and resulted in a memorandum of understanding (MOU), in which the parties also agreed to observe a countrywide ceasefire.
However, both sides have recently accused each of attacking the other's positions during the agreed period of tranquility. According to Justice Africa, the Khartoum government in particular is showing "disturbing signs" that it is ready to resume the war.
"The Khartoum government has made a number of bellicose statements, and it is playing provocative games with the southern militias, an indication that Khartoum is ready to at minimum, push the boundaries of what is allowed under the ceasefire, and at worst, return to war," the statement noted.
Last month's extension of the state of emergency for another year was also a sign that Khartoum is reluctant to move seriously towards democracy and respect for human rights, according to Justice Africa. It said Khartoum had recently been involved in a "curious diplomatic gambit" with Nigeria, aimed at undermining the regional Inter-Governmental Authority on Development (IGAD) process. In this context, the statement added, "mediators must continue to face a considerable task that demands patience, focus, energy and a thick skin in order to keep the process moving". (keralamonitor.com)
EXPORT GROWTH ON A HIGH TRAJECTORY - HIGHLIGHTS OF PERFORMANCE IN THE FOREIGN TRADE SECTOR IN 2002
New Delhi: January 06, 2003
India's exports have been on a high growth trajectory throughout the year 2002. In fact, the country's export growth during the first half of the current fiscal (April-September 2002) touched 19% and what is particularly noteworthy is that against the export target of 12% set for the whose fiscal year, the growth of India's exports during the first 8 months (April-November 2002) has been over 15%. Thus, the double-digit export growth momentum was sustained throughout the year 2002.
The new Export-Import (EXIM) Policy unveiled by the government on March 31, 2002 for the five-year span zeroed in on export market diversification as one of its policy planks with special focus on hitherto untapped regions like sub-Saharan Africa and the Commonwealth of Independent States (CIS). The Policy contained several far-reaching components to take India's exports on a steady growth trajectory. These include, among others, removal of all import curbs or quantitative restrictions (QRs), save a few sensitive items reserved for exports through state trading enterprises, a farm-to-port approach for exports of agricultural products, special thrust on cottage sectors and handicrafts and beefed up Assistance to States for Infrastructural Development for Exports (ASIDE).
Agri Export Zones (AEZs) which were introduced in the previous year Exim Policy had really taken off by now with an aggregate outlay of Rs. 1025 crore being forecast during the next three to five years in the 40 AEZs sanctioned in as many as 17 States. What is of significance is that the private investment in these zones over the last one year was of the order of Rs. 95 crore while total exports from these zones during the period October 2001 to October 2002 fetched Rs. 148.43 crore. It is to be noted that the products covered by the AEZs include pineapples, gherkins, litchis, mangoes, vegetables, potatoes, apples, onion, garlic, basmati rice, walnut, besides non-traditional ones like ginger, turmeric, orchids and cherry pepper. Alongside the sprouting of these AEZs, modern perishable cargo handling facility and auction centres for flowers have also been coming up, giving a decisive push to exports of these items from India.
Yet another milestone in 2002 made by the authorities in their consistent quest for pushing export products of heritage value was the enhancement of export capabilities of the small scale sector, which accounts for about 50 per cent of the country's exports. These capabilities were strengthened through a programme for "Special Focus on Cottage Sector and Handicrafts" including promotion of cotton sector exports under Khadi & Village Industries commission, access to funds from Market Access Initiative (MAI) for units in the handicrafts sector and benefits of export house status at a lower average export performance. Analogous spurs would be extended to industrial cluster towns with export potential like Tirupur (hosiery), Panipat (woollen blankets) and Ludhiana (woolen knitwear).
As the country has realised that successful export effort lays in fostering exclusive export enclaves such as Special Economic Zones (SEZs) modelled after the ones in China, though not at that gigantic scale, the Exim Policy unveiled additional incentives to SEZs. These include, inter-alia, income tax concessions, exemption from Central Sales Tax (CST) on supplies from Domestic Tariff Area (DTA), drawback/duty entitlement passbook (DEPB) to DTA suppliers, freedom to make overseas investment and carry out commodity hedging. For the first time, Overseas Banking Units (OBUs), free from such obligations like credit reserve ratio and statutory liquidity ratio, would be set up in SEZs to provide access to external finance at international rates. This was followed up by a post-Budget announcement by which 100 per cent deduction of export profit was allowed to all SEZs starting production on or after April 1, 2002 for a period of five years and thereafter at 50 per cent for the next two years. The export performance of SEZs or units in Export Processing Zones (EPZs) during the period April to November 2002 was Rs. 5380.97 crore, as compared to Rs. 4936.42 crore in the comparable months of 2001.
Alongside specific spurs to traditional export items like gems & jewellery, exports of agri & allied product, additional fillip to SEZs, the Exim Policy also accorded impetus to the hardware sector as the Electronic Hardware Technology Park (EHTP) scheme was modified to enable the sector to avail of the zero duty regime under the Information Technology Agreement (ITA-I).
Apart from these specific booster measures, the government also rationalised and simplified procedures in respect of various export promotion schemes with a view to cutting down unwanted hassles and minimise the interface between the bureaucrats who administer these schemes and the genuine exporters with a view to bringing down the transaction cost to industry and trade tangibly. The 2002-03 Union Budget too take due care of exporters and major changes in this policy include reduction in the peak rate of customs duty from 35 per cent to 30 per cent and the customs duty on dairy products was hiked to the WTO bound rate of 40 per cent.
In order to provide a level playing field for domestic industry and exporters who are faced with cheap imports threatening their viability, the Designated Authority in the Anti-Dumping & Allied Duties was proactive, providing the much-needed breather to domestic industry by its dispassionate and logical probe into dumping, establishing linkage between dumping and injury.
The year 2002 also saw finalisation of the report of the Committee on the Operational Modalities of the Rs. 500 crore Price Stabilisation Fund for Commodities as the government was seriously concerned over the problems plaguing growers of coffee, tea, rubber and tobacco due to prevalent poor prices for these commodities. The scheme to be operational for ten years would commence from April 2003 and would seek to effect price stabilisation for each of the commodities without resorting to the costly practice of procurement operations.
The Medium Term Export Strategy (MTES) was announced by the government in January 2002. The strategy aimed at augmenting the country's share in world trade to one per cent by 2006-07 from the extant of 0.67 per cent which implies doubling exports from the present level. The MTES incorporates product (as many as 220 commodities) and market identification for exports and indicative sector-wise strategies for identified potential sectors.
In the post-Doha developments, India continues to play a proactive role by taking active part in all negotiations for which modalities have to be firmed up before March 31, 2003 and final negotiations to be sealed by 2005. On the General Agreement on Trade in Services (GATS), India continues to focus on seeking enhanced market access for developing countries in future negotiations. India has time and again urged that the Work Programme on Implementation Issues should be given the highest priority. Greater attention needs to be devoted to issues about Sanitary & Phyto-sanitary standards and technical barriers to trade so as to fully realise gains in agricultural trade liberalisation. India also stuck to its contention that the trade-related intellectual property rights (TRIPs) agenda should reflect the concerns of developing world. India's viewpoints on all these issues were forcibly articulated at the mini-ministerial held in Sydney, Australia, in the middle of November, 2002. (keralamonitor.com)
