SAARC
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GDP growth rate in India revised to 6.4 percent
A sharp fall in agricultural growth has pulled down the overall growth in Gross Domestic Product (GDP) in 1999/2000 to 6.4 percent from 6.6 percent recorded during the previous year. Quick estimates of national income, consumption expenditure, saving and capital formation released by the Central Statistical Organisation recently pegged the GDP at constant prices in 1999/2000 at Rs. 1,151,991 crorecompared to Rs. 1,083,047 crore in 1998/99. For 1998/88, the government has revised the GDP growth rate from 6.8 percent to 6.6 percent. While growth in agriculture dropped to 0.7 percent in the period against 7.1 percent in 1998/99, the manufacturing sector registered an impressive growth of 6.8 percent against a growth rate of 2.5 percent in the pervious year. CII demands 100% tax holiday for core sector projects Inabidto jump start investments in critical areas of infrastructure, the Confederation of India Industry (CII) has asked for a 100 percent tax holiday for 15 years on projects in the power, roads, railways, telecom and the port sectors. Addressing the press recently in New Delhi. CII's infrastructure committee chairman Nasser Munjee said, "the present tax holiday, structured in two slabs of zero tax for the first five years and 25-30 percent for the next five years, is wholly inadequate for speedy investment in the infrastructure sector." Foreign investment in India In the first decade of its economic liberalisation India only managed to attract foreign direct investment (FDI) worth 23.7 billion dollars, a little more than what China receives in six months. According to government figures published widely in newspapers recently, the actual FDI inflow into the country since January 1991 to December 2000 was 34.55 percent of the 68.3 billion dollars approved during the 10 year period. Although New Delhi launched sweeping free-market reforms in 1991 which ended more than four decades of socialist style protectionism, foreign investors continue to be wary of India. Government figures show the inflow of 4.5 billion dollars in the calendar year 2000 was less than half the targeted amount of 10 billion dollars. Moreover, while 4.5 billion dollars was India's highest FDI inflow in a single year, the sum was only around 10 percent of what China is estimated to have received last year. India's 10 million kg tea export to Pakistan to help expand global share Tea industry is quite upbeat over the memorandum of understanding (MoU) with Pakistan Tea Association (PTA) for export of about ten million kg of tea this year, seeing it as a step towards substantially increasing India's share in the global market. "The signing of the MoU for exports upto 10 million kg of tea in 2001 is significant as it is to be seen aspart of our efforts to search new markets even as we consolidate old ones to raise our share in world trade which has been declining" a senior Indian Tea Association (ITA) official said. He said the MoU, signed between ITA and PTA in Karachi recently, was also a major breakthourgh in the Indo-Pak context since it was PTA which had committed to take appropriate steps and render assistance for facilitating tea imports from India. The MoU was to be seen from the long term perspective as it was valid for five years and was aimed at gradual increase in Indian share in the Pakistan market to 10 percent to 15 percent which worked out to be about 20 mn kg of annual export. Export Earnings of Sri Lanka up by 30% Export earnings of Sri Lanka recorded a 29.86 percent growth during the first ten months of 2000 compared with the 3.84 percent growth in the previous year. The country continues to be on its steady path to the major objective of achieving structural changes in the export sector. The non-traditional exports, which were 43.20 percent of exports in 1980, reached 51.52 percent of total exports in 1985. There was a further increase of this share to 66.69 percent of total exports by 1990 and 83 percent by 1999. The corresponding decline in the share of traditional exports in total exports was 56.8 percent in 1980, 48.5 percent 1985, 32.81 percent in 1990 and finally to 20 percent in 1999. The heavy dependence on traditional exports which had limited market opportunities was a major concern for Sri Lankan authorities, which established the Sri Lanka export development Board EDB in 1979 with the exclusive responsibility of promoting non-traditional exports. Several measures were taken by the EDB, setting its sights on the needs of the new millenium. To keep in the with the developments of the information age, steps were taken to popularise the use of electronic trade information among the exporters. Opening of the Cyber Trader the E-Commerce Centre at the Export Development Board premises was a major event. Lankan Cabinet ordered to cut spending Sri Lankan President Chandrika Kumaratunga has ordered her 45 Cabinet ministers to cut transportation, meals, hotel allowances and other spending, citing the burden of war spending. "The government has decided to prune down on recurrent expenditure due to the limits in borrowing and tax revenue so that there will be more funds available for development", Kumaratunga said in a directive to her Cabinet made available to The Associated Press. She said government expenditure had shot up in 2000 due to escalating military costs and rising global fuel prices. |
