Sino-Indian trade crosses $10 billion mark
Beijing: India-China bilateral trade has set a new record by crossing the $10 billion mark for the first time. India has also emerged among the top 10 Asian trading partners of China, coming in eighth after Japan, Hong Kong, South Korea, Taiwan, Malaysia, Singapore and Thailand.

India-China bilateral trade touched $10.84 billion during the January-October period, registering an impressive growth of 82.53 per cent over the corresponding period last year, according to Chinese customs statistics. Two-way trade between the two sides is expected to hit $12 billion during the January-December period.

Indian exports to China during January-October period was worth $6.27 billion, up 90.86 per cent while India's imports from China for the same period touched $4.56 billion, up 72.19 per cent over the same period last year.

During the first ten months, India enjoyed a trade surplus of $1.71 billion with China.
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Finance Commission for 'equalisation principle' between States
New Delhi: The 12th Finance Commission has, in its report, suggested a marginal tilt in favour of grants in the balance between devolution of taxes and grants, to enable the application of "equalisation principle" between States.

The Chairman of the 12th Finance Commission, Dr C. Rangarajan, submitted the report to the President, Dr A.P.J. Abdul Kalam, here on Friday.

Fiscal experts and certain State Governments had in the past contended that the Centre-State transfers were not progressive enough to address the widening imbalances between States. On the other hand, high-income States (rich States) have been complaining that the Centre-State transfer system was punishing them for their performance rather than rewarding them.

Dr. Rangarajan told reporters that States and others should form an opinion on the recommendations of the Commission only after "considering tax devolution and the grants in totality and in terms of what they finally get."

He said the 12th Finance Commission had in its report addressed all the issues referred to it including tax devolution, grants, debt relief, restructuring of public finances, flow of funds to urban and local bodies and the requirements for calamity relief.

Dr Rangarajan also said that there was a separate chapter in the report that dealt with the restructuring of public finances, both at the Central and States level. "We have, in this chapter, set milestones to be achieved by the Centre as well as the States," he said.

The 12th Finance Commission was to have submitted its report by July 2004. Its term was however extended till December on account of the general elections.
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Inflation falls to 7.02 per cent
Mumbai: Inflation fell for the second consecutive week to 7.02 per cent for the week ended December 4, mainly due to cheaper primary and fuel products.

The point-to-point Wholesale Price Index (WPI) inflation fell by 0.28 per cent from 7.3 per cent in the previous week as vegetable prices fell by a whopping 8 per cent.

The final inflation and WPI stood unchanged at their provisional levels of 7.1 per cent and 188.5 points during the week ended October nine.
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Kamal Nath: FTAs to drive India's future trade
Mumbai: The Union Minister for Commerce and Industry, Kamal Nath, on Friday said that 60 per cent of India's future trade would be accounted for by free trade agreements (FTAs), and with such countries as Paraguay, Argentina, Brazil, Pakistan and even China.

He added that the Ministry was in talks with the Mercusor (a trade association comprising Argentina, Brazil, Chile, Paraguay and Uruguay) and SACU (South African Customs Union) and looking to increase bilateral engagements with more countries. He was speaking at a conference on FTAs and business opportunities for India organised the by Indian Merchants Chamber (IMC).

The Minister added that efforts were on to convert the SAARC Preferential Trade Area into a full-fledged FTA to be called SAFTA. This would be effective in January 2006.
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Thailand: Special package for software investments
Chennai: Thailand has come out with a special package for investments for the software industry, Thamrong Mahajchariyawong, Assistant General Secretary, Board of Investment, Government of Thailand, said today.

Speaking at a seminar on `Business Opportunities Emerging from India-Thailand FTA', organised by the Federation of Indian Chambers of Commerce and Industry (FICCI), Mahajchariyawong said that investments in the software sector entailed an eight-year tax holiday without a cap.

Investments in certain other sectors also entailed a tax holiday for specified periods, depending upon where the project is coming up, but the amount of tax exempt is capped at 100 per cent of the investment.

Statistics show that Indian investments in Thailand in the first 10 months of the current calendar year amounted to $50 million, compared with $88 million in the whole of 2003. The Indian textile company, Raymonds, invested $44 million in Thailand last year to manufacture four million metres of worsted fabric every year.
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