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June / July SAARC
The Indian market for IT products soared 30 percent in the year ending March 31 to nearly four billion dollars, according to a recent survey by market research group International Data Corp. India (IDC India).
The survey said domestic spending on IT hard ware, software and services totalled 165.4 billion rupees (3.9 billion dollars) in fiscal 1999-2000.
Spending on hardware was up 38.6 percent from the previous year at 67 billion rupees, with PC sales driving the growth figure.
Spending on packaged software rose 21.4 percent to 33 billion rupees.
IDC India said the sector’s performance was “remarkable” given the economic uncertainty provided by the Kashmir border conflict with Pakistan and general elections.
“Given the current buoyancy of the market, IDC expects the market to sustain this level of growth for at least a couple of years,” the survey said.
“This would make India one of the fastest growing IT markets in the world, if not the fast est,” it added.
India’s Exports Surge by 30% in April
India’s exports showed a dramatic surge of 30 percent in the first month (April) of the current financial year, raising prospects of high growth during 2000-01. This unprecedented spurt in exports accompanied by high import growth of 43.64 percent, leaving a trade deficit of $1.11 billion, almost double the excess of imports over exports in April 1999.
Much of the import growth in April was accounted for by a hefty 123 percent growth in petroleum crude and products imports. Even then, non-oil imports, comprising mainly industrial machinery and raw materials, too grew by 25.72 percent, signifying a pick-up in industrial activities.
India’s export growth touched double-digit level in 1999-2000 after three years of slow-down. For the current year, a target of 18 percent export growth has been fixed. Exports of textiles, chemicals, engineering goods and iron ore are expected to grow fast this year.
These export data, compiled by DGCI & S. as well as the export target fixed for the year do not account for computer software and services exports.
The trade figures for April this year show that exports were valued at $ 3.422 billion against $ 2.632 billion in April 1999.Imports were estimated at $ 4.532 billion against $ 3.155 billion in April 1999.
Oil imports amounted to a huge $ 1.295 billion in April 2000, more than double the April 1999 level of $ 580 million. Non-oil imports in April this year were worth $ 3.237 billion against $ 2.575 billion in the corresponding month last year.
Bangladesh to privatise tourist spots
Bangladesh authorities have decided in principle to lease out the country’s potential tourist spots to the private sector to boost tourist numbers, officials said recently.
The decision was taken at a meeting of the National Parjatan Parishad (tourism council) chaired by Prime Minister Sheikh Hasina Wajed.
A three member body was also formed at the meeting to figure out a comprehensive plan for submission to the tourism council within six months.
The committee was assigned to study the country’s potential tourism spots, the performance of existing tourism facilities being run under the state owned Bangladesh Parjatan Corporation and find out possible incentives to attract the private sector to invest in the sector.
Bangladesh endowed with the world’s longest unbroken beach attracts less than 200,000 tourists a year, far below the number of visitors to other South Asian countries. Officials said lack of infrastructure and other tourism facilities were the main reasons for low tourist arrivals.
Pakistan launches budget roadshow
Pakistan’s military government recently launched a national roadshow to sell its first budget, promising a major “departure” from the past and broad structural reforms to tackle crippling public debt. Finance Minister Shaukat Aziz said the June 17 budget aimed to restore credibility to the battered economy after years of poor management at the hands of corrupt civilian governments.
He cited the “huge public debt and debt servicing costs,” the narrow tax base and high fiscal deficit, as well as “anaemic export growth” as among the biggest challenges which would be addressed in the budget.
“This is the cumulative effect of the lack of proper economic policies over the past decade. As such this cannot be corrected overnight but can be corrected... over several years,” he told the first of five pre-budget seminars around the country.
Pakistan, Iran likely to finalise deal on pipeline
Iran and Pakistan are likely to reach an agreement on the proposed 1,500 km-long Iran-India gas pipeline project during Pakistani military ruler Pervez Musharraf’s upcoming visit to Tehran.
Pakistan would receive $600-700 million per annum for providing transit service for the pipeline from Iran to India passing through its territory.
The Khaleej Times reported that Musharraf will convey his country’s formal consent to Iranian authorities over the tripartite gas pipeline project during his visit to Tehran in connection with the Economic Cooperation Organisation (ECO) summit.
Sri Lanka raises fuel prices
Sri Lanka recently increased by 20 percent the price of diesel used widey in the public transport sector.
The government, which holds a monopoly on fuel sales, raised the price of diesel from 16.20 (21 US cents) a litre to 19.50 rupees (26 US cents), officials said. Higher grade diesel costs 5.30 rupees more.
The sharp increase came on top of a 20 to 49 percent increase in fuel prices ordered by the government in February.
From June 1, Sri Lankan consumers have also had to pay more for their gas, electricity and telecommunications. Those hikes came just three weeks after the government raised taxes to finance the escalating battle against Tamil rebels.
Electricity tariffs were raised by six precent together with a 25 percent surcharge for those who fail to comply with a government requirement to reduce energy consumption by 20 percent.
However, the bigger shock was in the 30 percent increase in the price of liquefied petroleum gas (LPG) used in domestic cooking in over a million households.
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