The government provides a policy regime that facilitates and fosters growth and development of industry. Reserve Bank of India has also issued detailed guidelines for industrial rehabilitation including detection of industrial sickness at incipient stage and extension of relief and concessions to potentially viable units. These concessions, inter-alia, include conversion of debt into equity, interest rate concessions and waivers of penal rate.

This information was given by Shri Ch. Vidyasagar Rao, Minister of State for Commerce & Industry, in a written reply in the Rajya Sabha today.

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Press Information Bureau

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New Delhi: December 22, 2003

There is a proposal to enter into a Comprehensive Economic Partnership Agreement (CEPA) between India and Sri Lanka.

Pursuant to the meeting between the Prime Minister of India and Sri Lanka during 2002, a Joint Study Group (JSG) was set up. This Group, in its report submitted to the two Prime Ministers on 20^th October, 2003 in New Delhi, has recommended that CEPA could address issues such as reducing items under the negative list, adopting trade facilitation measures like harmonised customs procedures, conclusion of Mutual Recognition Agreements (MRAs). Additionally, the CEPA would include trade in services, investment and economic cooperation. The details of the CEPA are yet to be negotiated by both countries.

This information was given by Shri S. B. Mookherjee, Minister of State for Commerce & Industry, in a written reply in the Rajya Sabha today.

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Press Information Bureau

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New Delhi: December 22, 2003

India has achieved a share of 1.02% of total US merchandise imports in 2002 and is the 19^th largest supplier to US market. This was stated by Shri Arun Jaitley, Union Minister of Commerce & Industry, in the Rajya Sabha today.

India’s merchandise trade with USA has steadily increased since 1998 to 2002 except in the year 2001 when it declined by 5.9% from the previous year. In the first five months of fiscal year 2003-04, India’s merchandise exports to USA are estimated at US $ 5.47 billion as compared to US $ 5.02 billion in the same period last year.

The government’s efforts to expand Indo-US trade are a sustained and continuous process. Besides, promoting India’s exports to USA in general and identifying products with good export potential, efforts are made to break into new areas. Special emphasis is given to developing new and fast growing areas, such as information technology and biotechnology, promoting exports through participation in major trade shows and specific trade promotion events, apart from streamlining the information and data base. Close monitoring is done of important bilateral trade related issues in liaison with US authorities, Shri Jaitley said.

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Press Information Bureau

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New Delhi: December 22, 2003

India-China trade data for April-July 2003-04, compared to 2002-03 is as under:

(US $ million)

Major items of India’s exports to China are primary & semi-finished iron & steel, iron ore, plastic & linoleum products, other ores & minerals, drugs, pharmaceuticals & fine chemicals, marine products, processed minerals, inorganic/organic/agro-chemicals, cotton yarn, fabrics, made-ups etc., and petroleum products.

This was stated by Shri S. B. Mookherjee, Minister of State for Commerce & Industry, in a written reply in the Rajya Sabha today.

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Press Information Bureau

Government of India

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India has so far not applied countervailing duty on agro-imports from any Member of the World Trade Organisation (WTO), including the US and the EU, for the purpose of offsetting subsidy on such imported products. Government will take action to apply countervailing duty on subsidised imported products in accordance with the provisions of the Agreement on Agriculture and the Agreement on Subsidies and Countervailing Measures of the WTO either based on receipt of a duly substantiated petition from the domestic industry seeking initiation of an investigation leading to such action or based on sufficient evidence of existence of a subsidy, injury and causal link to justify initiation of an investigation.

This information was given by Shri S. B. Mookherjee, in a written reply today in the Rajya Sabha.