Ministry Of Commerce

				Ministry Of Commerce & Industry, Govt. of India Udyog Bhavan, New Delhi – 110011 India
Issue No. 3 , June 2004
In this Issue
Message	Foreword	Common Minimum Programme			Economy update
News & Events	From the Editor's Desk	Industrial Infrastructure Improvement Schemes			Contact Address
Message The Government is committed to growth of the economy by at least 7-8% per year over a decade and more by unleashing the creative energies of entrepreneurs and businessmen. To achieve this growth the Government attaches the highest priority to the development and expansion of physical infrastructure. FDI will continue to be encouraged in infrastructure, high technology, exports and generation of employment & local assets. I take this opportunity to reiterate our commitment to continued economic reforms with a human face to stimulate growth, investment and employment. Kamal Nath Commerce & Industry Minister Government of India			Foreword Department of Industrial Policy & Promotion (DIPP) has started the E-Newsletter for informing domestic and overseas investors about the opportunities existing in India. The focus of this issue is the National Common Minimum Programme and the Schemes for Improvement of Industrial Infrastructure. Views of readers are welcome. Lakshmi Chand Secretary Department of Industrial Policy & Promotion Government of India
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National Common Minimum Programme

Salient point of National Common Minimum Programme (NCMP) relating to industry and economy are;

� Economic growth of at least 7-8% per year over a decade and more.

� FDI will continued to be encouraged and actively sought particularly in areas of infrastructure, high technology and exports and where local assets and employment are created on a significant scale.

� The government will set up a National Manufacturing Competitiveness Council to provide a continuing forum for policy dialogue to energise and sustain the growth of manufacturing industry like food processing, textiles and garments, engineering, consumer goods, pharmaceuticals, capital goods, leather, and IT hardware.

� The Government attaches the highest priority to the development and expansion of physical infrastructure like roads, highways, ports, power, railways, water supply, sewage treatment and sanitation. Public investment in infrastructure will be enhanced, even as the role of the private sector is expanded.

� The Government pledges to raise public spending in education to least 6% of GDP.

� The Government is deeply committed, through tax and other policies, to the orderly development and functioning of capital markets that reflect the true fundamentals of the economy.

The Government will raise public spending on health to at least 2-3% of GDP over the next five years with focus on primary health care.

Economy Updates
	GDP grew by 8.1% in 2003-04 compared to 4.0% in 2002-03.
	The Foreign Exchange Reserves stood at US$ 118.6 billion in May 21, 04
	Industrial production grew at 6.9% in Apr. Mar 2003-04 as against 5.7% in the same period previous year.
	Rupee value against US$ stood at Rs 45.56 as on May 31, 04 compared to Rs 47.64 as on March 13, 03
	Exports maintained a healthy growth of 12.8% in 2003-04 in dollar terms compared to 18.1% of previous year.
	Total Foreign Investment Inflows grew to US$ 13.3 billion in 2003-04 period up from US$ 5.6 billion in 2002-03

	National Summary Data Page RBI Bulletin Details………

	Policy Support For Improvement in Industrial Infrastructure Government of India has been continuously developing policy initiatives and providing incentives for creating and augmenting industrial infrastructure of world class. A gist of major policy efforts are given below:-
� Special Economic Zone Scheme: A policy was introduced in the Exim Policy effective from 1.4.2000 for setting up of Special Economic Zones in the country with a view to provide an internationally competitive and hassle free environment for exports. (….details)
� Industrial Infrastructure Upgradation Scheme: The Department of Industrial Policy and Promotion has started operating a scheme for upgradation of infrastructure of the industrial clusters, under which it provides grants to SPVs upto 75% of the project cost subject to a maximum of Rs. 50 crores. (….details)
� Industrial Park Scheme: Department of Industrial Policy and Promotion operates another scheme for improving industrial infrastructure by providing income tax exemption for ten years for setting up Industrial Parks/ Industrial Model Towns/ Growth centres.( ….details)
� Backward Area Development Scheme : To remove regional disparities in industrial development the Department of Industrial Policy and Promotion operates special schemes for development of hilly & backwards regions i.e. North East States, Himachal Pradesh, Sikkim, Uttaranchal and Jammu and Kashmir. Under this scheme tax exemptions and transport subsidies are provided. (….details)

News
Foreign Firms Allowed to raise Capital In India: Department of Company Affairs, Government of India issues norms for Indian Depository Receipts. Under this any company registered outside India can raise IDRs provided they have minimum paid up capital of US $ 100 million and should have a five year profit track record. (…… details)	SEBI Paper on Policy options permitting foreign Hedge Funds to access Indian securities market: "Reports for public comments” at www.sebi.gov.in seeks to open a limited FII-window to allow the well-managed alternative investment vehicles of the above genre to operate as direct investors in the Indian securities markets in a transparent and orderly manner.
US Pension Funds in India: California Public Employees' Retirement System (CalPERS), the largest public pension fund of the U.S., has decided to include India in its list of permissible emerging equity markets. This implies that the fund will now invest in the Indian equity market through the FII route. This is likely to open the path for many smaller foreign funds also to invest in the country. (…… details)	Nokia: India Fastest Growing Telecom Market : Nokia chairman and CEO Mr Jorma Ollila said in a CII Telecom Summit 2004 in March 04 New Delhi that India would soon start 3G mobile services. (…… details) In related news India experienced 150% growth in the mobile users, which stood at 33.2 million as on March 04. (…… details)
Textile and Auto Parts Next in sunrise sectors: Releasing McKinsey report in New Delhi in March 04, Textile Secretary Mr S.B. Mohapotra gave a firm indication that US and European MNCs are all set to outsource their operations to India to cut their costs and post healthy dividends to their investors. (…… details)	India Jumps 16 Places In Competitive Ranks: IMDs World Competitive Year Book 2004 lists India at rank 34- A Jump of 16 Places in the competitiveness of 16 countries. India’s Business Efficiency Rank also jumped to 22. (…… details)

Forthcoming Events

India OECD Global Forum for International Investment and India Investment Round Table, October 19-22, 2004, New Delhi: Department of Industrial Policy & Promotion and Organisation of Economic Cooperation and Development are organising Global Forum for International Investment (GFII) and India Investment Round Table in October 2004 in New Delhi. GFII is a forum for Brainstorming and evolution of Foreign Direct Investment Policies of the world. India Investment Round Table will provide an opportunity to 150 Indian and Overseas delegates to discuss business alliances on one to one basis. (…. details)

International Conference on “India – A Global R&D Destination, December 6-7, 2004, New Delhi: Department of Industrial Policy & Promotion and Federation of Indian Chamber of Commerce & Industry (FICCI) supported by Council for Scientific and Industrial Research (CSIR), Government of India are organising an International Conference on “India – A Global R&D Destination on December 6-7, 2004, New Delhi. India will showcase its R&D capabilities to prospective clients from across the globe in this event. A concurrent exhibition depicting R&D achievements will also be organised.

Dutch Project Grants to Indian Private Sector for Technology Upgradation: Department of Industrial Policy & Promotion and Royal Netherlands Ministry of Economic Affairs though an MoU have brought a scheme of 50% grants on project costs under Dutch PSOM. With the support of Confederation of Indian Industry and Federation of Indian Chambers of Commerce and Industry, an awareness workshop about the scheme details is being organized in July 2004.(…. details)

From the Editors’ Desk:

1991 was a milestone on the journey of modern economic reforms. The journey continues successfully as is evident from 5% plus GDP Growth. Successive Governments in the centre have maintained the tempo of reform process. 2004 saw a new Government in office putting emphasis on improving quality of life of its citizens through continuance of reforms with focus upon masses. Renewed commitments to public investments in social and physical infrastructure have opened enormous opportunities for making further investments by the Global community. India has now become an even more attractive investment destination.

Suggestions in making this newsletter more useful to the readers are eagerly awaited.

The Editorial Team

For more information and suggestion please contact:-

Ms. Rashmi S. Sahni, Director,
Department of Industrial Policy and Promotion
Ministry of Commerce and Industry, Udyog Bhawan, New Delhi
Tel: + 91-11-23014212, Fax: + 91-11-2301 1770 , 2301 2626
e mail: r_sahni@ub.nic.in
Web site: www.dipp.nic.in

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