 
 
April / May2001 7% GROWTH IN INDIA FOR 2001-03 United Nations has said that India is expected to sustain a higher seven percent economic growth with a low five percent inflation rate during 2001-03, but warned that high public debt may push up interest rate. The Economic and Social Survey of Asia and the Pacific (ESCAP) 2001 released by UN predicts that the Indian economy, expected to grow by 6.9 percent next year and 7.2 percent in 2003, to be among the fastest growing economies in Asia after China, Malaysia, Vietnam and Laos. "Assuming no serious external shocks, both natural and human made and with the ongoing second generation economic reforms, especially in infrastructure, insurance, financial and public sectors, India is expected to sustain GDP growth rate in the neighborhood of seven percent during 2001-03; it said. SHELL SIGNS MOU FOR NATURAL GAS DEAL IN INDIA Shell International Gas signed a memorandum of understanding recently to invest more than dlrs 3 billion in a project to bring natural gas into India's most populous state, Uttar Pradesh. The natural gas is expected to cost about 20 percent less than naphtha, which is now used in much of India, which has a gas shortfall of 60 million cubic metres. Shell, the world's largest private company dealing in liquefied natural gas, hopes bring the gas to the northern Indian state through pipelines from India 's west coast by 2004, and from Bangladesh, if there is an agreement between the two countries by then. Bangladesh is believed to have huge gas reserves but has been reluctant to allow export without knowing how much will be left for Bangladeshis in the future. ASSOCHAM MOOTS 8-POINTS STRATEGY TO BOOST EXPORTS Associated Chamber of Commerce and Industry (ASSOCHAM) of India recently criticised the government for ignoring interests of exporters and said that urgent measures, including reducing credit and transaction costs and a long-term agri-exports policy, were needed to boost exports. In a memorandum to the Parliamentary standing committee on commerce and industry and the ministry of textiles, the chamber said, "The Budget does not mention anything about the exports, not even a pat on the back of exporters who have done so well to achieve 20 percent growth this year". On the contrary, government in the Budget has introduced a policy wherein exporters would have to pay 20 percent tax on their export income, it said. Urging for conducive policies to promote exports, the chamber mooted an eight-point strategy which includes increasing market development assistance reducing credit costs, strengthening of antidumping measures and 100 percent exporting firms to be treated at par with 100 percent EOUs. BANGLADESH TO IMPORT 7,00,000 T OF VEGOIL Bangladesh, one of the world's lowest per capita edible oil consumers, will import 700,00 tonnes of crude soybean and palmolein in calendar 2001, slightly up on 2000, traders said recently. The traders put carry over stock at over 100,000 tonnes after a year in which excess supplies caused a slump in retail prices but they predicted that domestic demand for edible oil in 2001 would rise by five percent. "The demand for edible oil is increasing with the rise of population growth and low prices," AKM Fakhrul Alam, country representative of Malaysian Palm Oil Promotion Council said. SPICE EXPORTS OUTPRICED BY PAK, VIETNAM Spice exports have declined by 24 percent in rupee value during the first 11 months of 2000-01 in face of stiff price competition from Vietnam, Pakistan and Nigeria. "Spice exports declined to 2.01 lakh tonnes valued at Rs 1392.35 crore in April-February 2000-01 from 2.12 lakh tonnes worth Rs. 1,832 crore in the corresponding period last fiscal due to setbacks in commodities like ginger, pepper, coriander and fenugreek," a senior spices board official said. Due to higher production and lower price in other countries like Vietnam, India lost its market share in pepper, with a 59 percent decline in quantity and 65 percent in value, the official said. PAKISTAN'S RESERVES $ 2.1BN Pakistan's total foreign reserves stood at 2.1062 billion U.S. dollars by April 2, the State Bank of Pakistan (SBP) announced in Islamabad recently. Out of this amount 1,0602 billion dollars are held by the SBP while the 1.046 billion stored in other domestic banks. The SBP also said that with further relaxation of the foreign exchange regulation, the foreign currency deposits of both resident and non-resident Pakistanis in commercial banks will no longer be rendered to the State Bank. LANKA SETS ASIDE RS. 63BN FOR DEFENCE IN NEW BUDGET Sri Lanka is to announce new tax measures recently in another war budget that has set aside an unprecedented 63.39 billion rupees (745 million dollars) for defence, officials said. The government is to announce in parliament the new revenue proposals aimed at keeping down the budget deficit buffeted by escalating defence spending to battle Tamil Tiger rebels, officials said. "It is most likely that the government will try to widen the tax net to rope in more people to pay their dues to the state," a senior treasury official said. The budget for calendar 2001 is being presented in the backdrop of a worsening economic crisis in the country. PAKISTAN SEEKS MONEY FOR IT Pakistan expects to attract dlrs 100 million in foreign investment for information technology, said officials attending an IT conference held in Karachi recently. Military ruler Gen. Pervez Musharraf, addressing the two-day Information Technology Commerce Network Asia 2001 in the commercial capital of Karachi, said he hoped the IT industry would help the struggling economy regain momentum. "(Information technology) will bring an economic revolution in Pakistan and, with private sector support, we would bring this revolution", Musharraf told the conference. Pakistan has recently framed laws to legalise e-commerce and protect intellectual property. It's also set aside 70 percent of the IT ministry's budget for IT education. 
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