Inter-State Council reconstituted
New Delhi: The Government has reconstituted the Inter-State Council (ISC), with the Prime Minister, Dr Manmohan Singh, as its Chairman. The other members of the council, according to an official press release here, are the Home Minister, Shivraj Patil, the Finance Minister, P. Chidambaram, the Agriculture Minister, Sharad Pawar, the Railway Minister, Lalu Prasad, the Road Transport and Highways Minister, T.R. Baalu, the Law Minister, H.R. Bhardwaj, the Defence Minister, Pranab Mukherjee, the Human Resource Development Minister, Arjun Singh, the Water Resources Minister, Priya Ranjan Dasmunshi and the Chemicals and Fertilisers Minister, Ram Vilas Paswan.

The Standing Committee of the ISC was also reconstituted, with the Home Minister, Shivraj Patil, as its Chairman. The State representatives of the committee include Chief Ministers: (West Bengal) Buddhadeb Bhattacharjee; (Assam) Tarun Gogoi, (Rajasthan) Vasundhara Raje; (Jammu and Kashmir) Mufti Mohammed Sayeed; (Uttar Pradesh) Mulayam Singh Yadav; (Kerala) A.K. Antony; (Andhra Pradesh) Dr Y.S. Rajasekhara Reddy; (Orissa) Navin Patnaik; and (Gujarat) Narendra Modi.
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Readymade garment exports move up 6 per cent
New Delhi: The country's readymade garment exports to quota countries increased by 5.98 per cent in terms of quantity and 9.04 per cent in terms of value in May 2004. In May 2004, the country exported 140.1 million pieces valued at $546.4 million as against 132.2 million pieces valued at $501.1 million recorded in May 2003, according to data compiled by Apparel Export Promotion Council. Garment exports in the first two months of the financial year 2004-05 amounted to 239.8 million pieces valued at $926.5 million dollar, an increase of 1.4 per cent in terms of quantity and 5.57 per cent in terms of value.

After witnessing a decline last year, exports to US seem to be on the recovery path, growing 5.35 per cent in terms of quantity and 2.15 per cent in terms of value in May 2004 at 59.1 million pieces valued at $251.5 million respectively. Garment exports to European Union increased 8.92 per cent in terms of quantity and 18.94 per cent in terms of value in May 2004. Exports to EU stood at 75.7 million pieces valued at $279.4 million and that to Canada were 5.3 million pieces valued at $15.5 million dollar.
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FICCI: FDI Attractiveness Index up 8 per cent
New Delhi: According to FICCI, the FDI Attractiveness Index has risen by 8 per cent to 3.9 in 2004, indicating improved perception of foreign investors regarding operational parameters and the prevailing market conditions in the country. The barometer of India's attractiveness as a Foreign Direct Investment (FDI) destination was 3.6 last year. ''The gain of 8 per cent shows that investors are extremely bullish on India, which is being perceived as a fairly attractive investment destination,'' said the Federation of Indian Chambers of Commerce and Industry (FICCI) Survey 2004.

The 1200 companies which participated in the survey are upbeat about India, with 73 per cent of the respondents making a ''positive'' assessment of the country as an investment destination over 40 per cent last year. The proportion of respondents who feel that there exists opportunities for greater FDI in their sector has increased from an already high 82 per cent last year to 93 per cent in 2004. However, according to FICCI: ''Besides security concerns, factors like exchange rate volatility, hardening commodity prices and higher interest rates in home country can also spoil the party as far as investment inflows into India are concerned. Global and regional trade initiatives would on the other hand give a boost to FDI inflows into India.''

According to the respondents, the top three motivating factors for their entry in to India are large market size, highly skilled manpower and low cost of infrastructure and operations. FICCI FDI Survey 2004 identified five thrust areas where a dedicated effort by the government would result in strong FDI inflows in the near to medium term. These are IT and related services, chemical and chemical products, rubber and plastic products, electrical machinery and apparatus and services sector.
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ICRA: Healthy growth for the software sector
New Delhi: Investment Information and Credit Rating Agency of India Ltd (ICRA), has predicted a healthy growth for the software sector in the short- to-medium term, backed by a strong gross domestic product growth in the US. It, however, warned that issues like raising of additional tax liability on information technology (IT) companies by the Central Board of Direct Taxes (CBDT) could act as an inhibiting factor on the IT firms.

Stating that the tax demands that were slapped on various companies were "huge" (in Wipro's case it is Rs 261.4 crore), ICRA contended that regardless of the reasons, such measures would inhibit the software industry. On the outlook for the Indian software industry, ICRA said that the sector is likely to post a strong growth in the short-to-medium term and that a strong GDP growth in India's largest export market - the US, would have a positive impact on the growth rate of the industry.
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