India and France to expand trade
New Delhi: India and France have agreed to take concerted steps to expand and diversify bilateral trade and investment to make ample use of the economic complementarities and the abounding business opportunities between them.

A joint statement issued at the end of the Indo-French Joint Committee meeting by the Union Commerce & Industry Minister, Kamal Nath, and the visiting Minister for External Trade, Francois Loos, took due note of the inadequate level of cooperation which is not commensurate with the vast potentials in bilateral economic relations.

The possibility of enhancing cooperation in the field of Geographical Indications for agricultural products was discussed. France conveyed its readiness to receive a delegation from India to discuss the modalities of cooperation in this area.

Loos said that India was a strategic country in respect of foreign trade for France and that his country had adopted a commercial action plan this year in order to develop its economic and commercial ties with India.

Both sides highlighted market access issues involving each others exports - i.e., on the Indian side, the issue of harmonisation of standards and non-tariff barriers affecting marine products and some processed food items and on the French side, the issue of taxes on imported goods especially on wines and spirits, customs controls on food stuffs and the Indian requirement to label the maximum retail price which they said hampered export of French products to India.

India has suggested that the French authorities could consider introduction of a visa/work permit regime that would facilitate easier movement of professionals and the issue of five-year green cards for IT professionals and personnel. The Indian side also suggested a bilateral framework for recognition of mutual technical qualifications.
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INPIC boosts Indo-Norwegian oil projects
Hyderabad: Indo-Norwegian collaborative research projects have got a boost, with Norway providing funds worth 50 million Norwegian kroner (Rs35 crore) over a five-year period. Under INPIC, an important project to enhance secondary oil recovery from oil wells in the country is being launched from February 2005.

The Hyderabad-based National Geophysical Research Institute (NGRI) will lead the two-year project with expertise from Norway. Under INPIC, collaborative projects in health, natural disasters, aquaculture, pollution and environmental technologies are currently under way.

The recovery of secondary oil currently is between 25 per cent and 28 per cent in India, while Norway has rates of 60-65 per cent. By enhancing recovery, huge sums of money are saved and returns on higher yields will earn more. The NGRI is discussing with the Oil and Natural Gas Corporation (ONGC) and other oil companies, which have wells, to use the expertise to enhance oil recovery.
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Parliament: Pak asked to grant MFN status: PM
New Delhi: Prime Minister Manmohan Singh told the Rajya Sabha that Pakistan has been asked to accord the Most Favoured Nation status to India. It is part of the efforts to normalise economic relations. However, no conclusion has been reached so far.

"We have impressed upon Pakistan that normalisation of economic relations between the two countries must include extending of the MFN status to India," the Prime Minister said.

In reply to a question, Singh said the issue of transshipment of goods to Afghanistan via Pakistan has also been discussed with Islamabad.
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Parliament: Tax tribunal to have powers to regulate own procedures
New Delhi: The proposed National Tax Tribunal (NTT) would have the power to regulate its own procedures. It would be guided by the principles of natural justice and not be bound by the procedures laid down by the code of civil procedure, 1906, according to the National Tax Tribunal Bill, 2004.

The NTT Bill, which was introduced in the Lok Sabha on Monday, provides that any person including a Government agency aggrieved by the decision or order of the NTT can file an appeal to the Supreme Court within 60 days from the date of communication of the decision or order of the tribunal.

The NTT, which would initially have 25 benches across the country, would hear cases on substantial questions of law from the Income-Tax Appellate Tribunal (I-TAT) and the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).

The Centre intends to spend a sum of Rs7.88 crore per annum towards the 25 benches that are initially to be set up as part of the proposed National Tax Tribunal (NTT).
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Survey: India Inc. heads optimism chart
New Delhi: The results of the 2005 International Business Owners Survey (IBOS) conducted by Grant Thornton in twenty four countries show that business owners of mid-sized companies globally are much more optimistic about their economy than they were a year ago. The most optimistic of them all, for the second year in succession, are in India and top the list with an optimism/pessimism balance of 88 per cent.

The optimism/pessimism balance is obtained by deducting the percentage of pessimistic businessmen from that of the optimistic business owners. In the case of India, while 89 per cent of the Indian businessmen were optimistic about the economic prospects, only one per cent of them were pessimistic, thereby leaving a balance of 88 per cent, as the remaining nine per cent remained non-committal.

According to Grant Thornton, India, "The pace of fiscal, economic and industrial reforms has not only continued under the new Government, but appears to have gathered speed. India Inc is emerging bigger, faster and stronger. India is also fast becoming the world's knowledge centre and back office. With an economist at the helm of the Government, far-reaching economic reforms and enterprise of Indian entrepreneurs, …(we) believe India will continue to outshine others for some time to come."

Also remaining very optimistic, as per the survey, are the raw material-producing countries such as Australia, Canada and South Africa. The greatest surge in optimism, as compared to last year, is in Ireland (up 72 points to 79 per cent), Poland (up 53 points to 21 per cent) and two of the post-SARS Asian economies, namely, Singapore (up 92 points to 62 per cent) and the Philippines (up 51 points to 50 per cent).

On the other hand, businessmen in Japan are the most pessimistic about their country's economy with an optimism/pessimism balance of minus 27 per cent, although the despair level is slightly lower than last year (-46 per cent). Incidentally, like last year, Japan is the only country with a negative balance in the survey and is at the bottom of the list. China is not among the countries surveyed.

Grant Thornton International is a non-practising, non-trading international umbrella organisation.
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