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Issue No. 10 09 September 2009

Highlights

- Government will go all-out to get back to 9% growth

- Government Roadmap for Financial Sector Reforms

- Foreign Trade Policy for 2009

- Landmark Education Bill passed by Parliament

- Stimulus package boosts housing loan off take

- Rs. 2,546 crore subsidy for textiles in three days

- India plans to overhaul tax system

- Mutual fund assets reach a new high at Rs. 7.2 trillion

- Outsourcing pie still sweet for India

- SEZs exports up 25% in Q1

- FIIs inflow tops $8 billion in 2009

- Indian economy set for positive growth in 2010

- Industrial output grows 7 per cent in July 2009

- India’s jewellery exports regain sheen in July

- India-Namibia MoU on Uranium

- HHEC online e-sale website

Government will go all-out to get back to 9% growth

Prime Minister Dr. Manmohan Singh, delivering his fifth speech on the occasion of India’s Independence Day on 15 August 2009, said the Government will take every possible step to restore annual economic growth to 9 per cent.

“Restoring our growth rate to nine per cent is the greatest challenge we face. We will make every necessary effort to meet this challenge — whether by increasing capital flows into the country, or by encouraging exports or increasing public investment and expenditure,” he said in his address to the nation on its 63rd Independence Day.

“Some people question whether India will ever be able to attain its true potential”, Dr. Singh said. “Ì have no doubt about this”, he added.

PM said the deficient rains would have an adverse impact on crops, but the country would be able to deal with the situation. We have adequate stocks of foodgrains. All efforts will be made to control the rising prices of foodgrains, pulses and other goods of daily use, he said. He also announced support to the drought-hit farmers, namely, postponement of date for the repayment of bank loans of farmers, additional support to them for payment of interest on short-term crop loans, etc.

He further stated that the goal is 4 per cent annual growth in agriculture and India will be able to achieve this target in the next five years. He also appealed to the business community to fulfil its social obligations by joining the Government’s efforts to ensure inclusive growth. To ensure that no one goes hungry, he said the Government is working to bring a food security law that provides for supply of 25 kg of rice or wheat at Rs 3 a kg to families living below the poverty line.

Government Roadmap for Financial Sector Reforms

On 04 August 2009, Finance Minister Pranab Mukherjee tabled in Indian Parliament a menu of financial sector reforms to be taken up immediately. These are:

- Liberalisation of Rules governing sale of shared by Indian companies abroad through American Depository Receipts (ADRs)

- Relaxation in the external commercial borrowing (ECBs) guidelines

- Innovative measures to spur investments through public-private partnerships

- Setting up of a dedicated SME stock exchange or a platform for small and medium enterprises to raise equity.

The Minister further stated that maintaining the public shareholding in listed firms at a minimum level of 25% is also a priority. Changes in the ECB policy could involve allowing more companies and sectors to bring funds through the automatic route. The rules can be further liberalised to allow more sectors access the ECB window.

Another measure on the priority list of the government include evolving the takeout financing scheme for long-gestation infrastructure projects and giving trusts greater autonomy in deciding their investments by amending the Indian Trusts Act, 1882. Besides, passage of the Pension Fund Regulatory & Development Bill is on the cards.

While spearheading these reforms, the government would continue to focus on fiscal consolidation by cutting down unproductive spending on order to sustain high growth.

Foreign Trade Policy for 2009

On 28 August, Commerce and Industry Minister Anand Sharma made announcement of foreign trade policy for 2009. Various measures announced to reverse the decline in exports and double outbound sales of goods and services in five year include duty-free import of capital goods, extended the duty refund scheme for exporters, and cut transaction costs for them. The Minister said he expected exports to reach $ 200 billion in the financial year ending March 2011.

The new policy shifts focus to 26 new countries to counter the demand slump in traditional markets. About 36 per cent of India’s exports worth $ 168.7 billion in 2008-09 were to Europe, 18 per cent to the US and 16 per cent to Japan. We have taken a conscious view to expand and diversify our export markets, especially in the emerging markets of Africa, Latin America, Oceania and the CIS countries, the Minister said. However, the exports were down 31.3 per cent in the quarter ended June 30 from a year earlier. This was in a sharp contrast from the annual growth of more than 20 per cent between 2004-05 and 2007-08.

The new policy assures stability and continuity of the existing schemes, at least for the next two years. The government’s focus will be on export sectors with high employment.

The introduction of zero-duty import of capital goods, under the Export Promotion Capital Goods Scheme, sent a wave of cheer among exporters, as this will enable them to modernise their manufacturing. The Duty Entitlement Passbook scheme, which neutralises the incidence of Customs duty on the import content of export products, has been extended by a year to December 2010. The new policy exempts exporters from paying fees for availing incentives under export development schemes. The Export Credit Guarantee Corporation Scheme, which provides credit risk insurance cover to exporters, will continue at least till March 31 next year.

Relief measures include providing dollar credit to exporters that will be overseen by a committee consisting of the finance secretary, commerce secretary and the chairman of Indian Banks Association. To protect small and medium exporters, who are unable to seek expensive legal help for foreign markets, a Directorate of Trade Remedy Measures will be set up.

Following are the highlights of the new Foreign Trade Policy :

- Duty entitlement passbook scheme extended till December 2010

- Extension of sops for export-oriented units till March 2011

- Export target of $200 billion set for 2010-11

- Growth target of 15 percent for next two years, 25 percent thereafter

- Inter-ministerial group to address issues raised by exporters

- Obligation under export promotion capital goods scheme relaxed

- Permission for tax refund scheme for jewellery sector

- No fee on grant of incentives to cut transaction costs

- Steps to help exporters reduce transaction costs

- Plan for diamond bourses in the country

- Single-window scheme for farm exports

- Re-export of unused leather allowed subject to 50 percent duty

- Minimum value addition for tea reduced to 50 percent from 100 percent

- Export units allowed to sell 90 percent of goods in domestic market

- Provision for state-run banks to provide dollar credits

- Twenty-six new markets added to focus market scheme

- Sops under focus market scheme hiked from 2.5 percent to 3 percent

- Number of duty-free samples for exporters raised to 50 pieces from 15

- New directorate of trade remedy measures to be set up

- Zero duty under technology upgrade scheme

Landmark Education Bill passed by Parliament

The Lok Sabha (Lower House) on August 5, 2009 passed the Right of Children to Free and Compulsory Education Bill 2009 hailing it as a historic effort to make free education a fundamental right for children in the age-group 6 to 14 years.

Speaking on the occasion, Human Resource Development Minister Kapil Sibal described the bill as “harbinger of a new era” for children to meet the challenges of the 21^st century. “We as a nation cannot afford our children not going to schools, the Minister said.

The Bill aims at achieving 10 broad objectives including free and compulsory edcaution, obligation on the part of States to provide education, nature of curriculum consistent with the Constitution, quality, focus on social responsibility and obligation of teachers and de-bureaucratisation in admissions. The Government will also put an end to the practice of schools taking capitation fees before admissions and subjecting the child or parents to any screening procedure. 25 per cent of seats in private schools will be reserved for children from weaker sections of the society.

Stimulus package boosts housing loan off take

According to the Reserve Bank of India, the government’s first ever initiative to provide impetus to the realty sector in the form of special home loan package has reaped benefits. The housing loan disbursed by bans as a whole grew by more than four times (353%) during three months ended May 2009 compared with the average 53% decline in the previous three quarters.

In December 2008, the special housing loan scheme was announced when home loan rates were ruling at around 11%. Public sector banks were given a special stimulus package, under which home loans were being offered at low interest. It brought a lot of homebuyers back to the market and also helped developers generate revenues. From a time when there were hardly any units being sold during August’08-March’09, demand picked up to the extent where almost 3-4 flats were being sold every week by April.

Rs. 2,546 crore (1 crore = 10 million) subsidy for textiles in three days

On 06 August, the Government announced immediate release of Rs. 2,546 crore as subsidy for the textile industry under the Technology Upgradation Fund Scheme to underpin its modernization efforts for meeting market challenges and enabling it to stay competitive in quality and price. Textile Minister Dayanidhi Maran said that it is for the first time that such a large amount of subsidy is being release in a single tranche. He further stated that the amount would be credited to bank accounts of beneficiaries in the record time of 72 hours (three working days).

The Minister also announced the setting up of a 41-member Working Group under the Chairmanship of the Textiles Secretary, Ms Rita Menon, to come out with a National Fibre Policy, designed to make India self-sufficient in fibre consumption and export requirements. He said the Group has been given a mandate to come out with a report within three months.

Out of the total subsidy of Rs 2,546 crore, Tamil Nadu corners the substantial chunk of Rs 643 crore by 3,286 applicants, followed by Maharashtra at 1,186 applicants for Rs 637 crore, Punjab for Rs 352 crore by 1,543 applicants and Gujarat at 4,051 applicants for Rs 275 crore.

India plans to overhaul tax system

Finance Minister Pranab Mukherjee announced on 13 August that India’s government is planning a big shake-up of its archaic tax system in an effort to curb widespread tax evasion as it confronts a sharply widening fiscal deficit and expanding social welfare programmes. The plan aims to foster greater compliance with tax laws by lowering key corporate and personal income tax rates, simplifying rules and eliminating exemptions blamed for eroding the tax base.

In this regard, the government initiated radical tax reforms through a draft code that aims at moderating income tax rates, abolishing Securities Transaction Tax and increasing deduction for savings up to Rs. 3 lakh. The government plans to introduce a bill in the Winter Session of Parliament if reasonable level of discussion has taken place on the draft code.

Mutual Fund assets reach a new high at Rs. 7.2 trillion

At the end of July 2009, the mutual fund industry`s assets under management (AUM) reached a new peak by crossing the Rs. 7 trillion mark for the first time, registering a healthy growth of 24% over the previous month. The period till July 2009, has witnessed five months of net inflows and only two months of net outflows, i.e. in March and June, mainly due to advance tax and quarter end capital adequacy-related balance sheet requirements of banks. The months following the quarter end March and June have seen large inflows.

Outsourcing pie still sweet for India

India continues to capture large share of new offshore centers being established in Asia. According to a report of the Everest Research Institute, a leading research agency on the IT, ITES and BPO Sector, outsourcing transaction volume increased 10% globally in the second quarter of 2009 as compared to the first quarter. While Asia continued to capture the largest share of offshore centers established in Q2, India maintained its leadership by attracting investments in tier-1 and tier-2 cities such as Coimbatore, Mumbai and Chennai. Of 27 new captives established in Q2, 9 new captive announcements were in India.

SEZs exports up 25% in Q1

On 12 August Commerce Secretary Rahul Khullar announced that exports from 98 functional special economic zones (SEZs) increased by over 25% in three months ended June 2009 valued at Rs. 39,410 crore, even as overseas sale of Indian goods remained in the negative territory during the period.

“Over 90% of SEZ exports are from the manufacturing sector ranging from handicraft to hi-tech goods. The growth is despite the fact that none of the multi-product zones having area above 1,000 hectares have become operational,” said a commerce ministry official.

However, overall merchandise exports from India in the three month period under review contracted 25.7% and stood at Rs 2,48,171 crore, as demand for goods in traditional overseas markets in the United States and Europe weakened. In fact, exports saw contraction for nine consecutive months ended June 2009.

FIIs inflow tops $8 billion in 2009

A stable government in India, initial signs of global economy and the impact of stimulus packages announced by the government in India all contributed to entice foreign institutional investors (FIIs) to invest in India. At the end of July, net inflow from FIIs stood at $ 7.3 trillion and it took another 20 trading sessions before net inflows crossed the $ 8 billion mark for the first time in this year. Last year, FIIs took out $ 12 billion from the Indian stock markets on account of India being hit by the recession. However, FIIs remained selective in their buying with only four sectors – real estate, banking and finance, engineering and oil and gas – garnering almost three-fourths of the total money invested. Foreign investors were not keen on investing in the telecom sector. They, in fact, sold equities of $ 1.1 billion in this sector during the quarter under review.

In June-end, the World Bank projected an 8% growth for India in 2010 making it the fastest growing economy for the first time, overtaking China’s expected 7.7% growth. India has consistently outperformed growth forecasts by the World Bank in the past.

Indian Economy set for positive growth in 2010

Standard & Poor’s mid-year review of the Indian economy highlights that India’s GDP growth is forecast at 5.8-6.3 per cent in 2009 and 6.8-7.3 per cent in 2010. GDP will be driven by the very strong domestic consumption helped by stable rural demand and the recent hike in public sector salaries.

A review of the last two quarters shows that the expansionary domestic policies and relatively limited financial integration significantly helped India to sustain positive growth in the first quarter. India discarded its fiscal consolidation targets and rapidly increased spending to bolster domestic industry, infrastructure, and construction-and propel domestic consumption.

The elections in India and direct stimulus to the larger rural population, low income earners, and pensioners in the form of farm-loan waivers, subsidies to buy consumer durables, tax incentives, etc. have supported the growth.

Some of the potential threats that could slow down or even derail the recovery include revival of inflation, high interest rates and persistent global sluggishness. Although inflation continues to drop, fiscal boosts and previously-pumped-in liquidity are cautioning the central bank against further rate cuts, waiting for fiscal policy to play out. Recent rise in food and commodity prices does pose a potential risk. Overall, the Indian economy is expected to continue in the positive growth trajectory on account of domestic forces – robust local consumption driven demand reinforced by strong policy responses.

Industrial output grows 7 per cent in July 2009

On 27 August, Commerce and Industry Minister Anand Sharma said that industrial output, as measured by the index of Industrial Production (IIP) grew 7 per cent in July 2009. He attributed the growth to fiscal and monetary measures by the government and the Reserve Bank of India. Overall consumer goods production rose 3.* per cent in June 2009, driven by a 15.5 per cent expansion in consumer durables output.

India’s jewellery exports regain sheen in July

The Gems and Jewellery Exports Promotion Council announced on 31 August that India’s gems and jewellery exports which lost a lot of glitter due to recession in the developed world, are regaining shine with exports in July aggregated to $ 1.9 billion as compared to $ 1.7 billion previous month. However, compared to last year, the exports in July this year showed a decline of about 3 per cent.

Gold jewellery outward shipments recorded a growth of 8.75 per cent and coloured germs stones 24.14 per cent. The US and the EU account for 40 per cent of India’s total jewellery sales overseas.

To boost the gems and jewellery exports, the Government has announced, among other measures, to establish diamond bourses to make the country an international trading hub under its new foreign trade policy for 2009.

India-Namibia MoU on Uranium

On 31 August, India and Namibia signed an MoU on civil nuclear cooperation which includes sale of uranium to India. The agreement was signed during the state visit of Namibian President Hifikepunye Pohamba to India.

HHEC Online e-Sale Website

The Handicrafts and Handlooms Exports Corporation of India Limited (HHEC), a Government of India Undertaking under the administrative control of Ministry of Textiles launched its online e-sale site as http://www.hheconline.in. The products available on the site have been procured by HHEC directly from the craftsmen, artisans and weavers across the country.

Information Technology and Information Technology Enabled Services (ITES) – an important sector for Foreign Direct Investment in India

Information technology has become one of the fastest growing industries in India over the past decade. IT sector, in fact, has played a key role in putting India on the global map. The growth in India’s IT sector is mainly dominated by IT software and services. From a meagre contribution of 1.2 per cent to the GDP in 1997-98, the IT sector is estimated to contribute 5.8 per cent to the GDP in 2008-09. The sector is expected to reach turnover of US$ 80 billion by 2011, growing at an annual rate of 30 per cent. As per the latest findings of the National Association of Software and Service Companies (NASSCOM), Indian IT-BPO sector grew by 12 per cent in 2008-09 to reach US$ 71.8 billion. Of this, the software and services segment accounted for US$ 59.6 billion. India’s domestic market has also become a force to reckon with. Domestic IT market (including hardware) reached US$ 24.3 billion in 2008-09, registering a 5.3 per cent growth over the previous year.

In the ITES sector too, India is referred to as the back office of the world. According to NASSCOM, the contribution of ITES to GDP has grown from 1.2% in 1997-98 to an estimated 5.8% in 2008-09. Indian IT-BPO grew by 12 per cent in 2008-09 to reach US$ 71.7 billion in aggregate revenue. At its current rate of growth, the BPO sector is expected to reach US$ 30 billion in export revenues by 2012. According to NASSCOM, in the IT-ITES market, the IT-ITES exports from India will exceed US$ 330 billion by 2019-20. Currently, the exports stand at US$ 47.3 billion at the current rate of growth.

Advantage India

India has considerable advantage in IT-ITES Sector, namely:

• Abundant talent with skilled manpower base
• Sustained cost competitiveness
• Enabling business policy and regulatory environment
• World class information security environment
• Rapid growth in key business infrastructure
• Continued focus on quality
• BPO and call centre advantage
• Growing domestic market
• Great history in software development

Investment Opportunities

• Customer interaction services
• Knowledge-based services
• Content development
• IT outsourcing
• IT consulting
• Engineering services outsourcing
• Software development
• IT enabled education

Major Policy Initiatives

Following are the salient features of the existing tariff scheme/policy applicable to electronics and IT industry:

Infrastructure support: To address the problem of inadequate infrastructure hampering the growth of electronics hardware in the country, the Government has set up Information Technology Investment Regions (ITIRs). The regions would be a combination of IT/ITES and electronics hardware manufacturing units, public utilities, residential areas, social infrastructure and administrative services.

Incentives for Research and Development: This initiative includes following Schemes:

• Support International Patent Protection in Electronics & IT – The Government has put in place a scheme called Support International Patent Protection in Electronics and IT (SIP-EIT). Under this scheme, SMEs and technology start-up units will be reimbursed costs incurred in filing international patent applications subject to a maximum of Rs. 15 lakhs (Rs. 1.5 million).

• Promote technology and innovation focused start ups - The Government has initiated a scheme for Technology Incubation and Development of Entrepreneurs (TIDE) in the area of Electronics, ICT and Management. The objective of the scheme is to promote product oriented research and development, assist institutions of higher learning to strengthen their technology incubation centres, and providing financial support thereto.

• Multiplier Grants Scheme – The Government has initiated a Multiplier Grants Scheme to support industry sponsored research programs with Indian universities. The Government would provide grants up to the maximum of twice the amount invested by the industry/industry consortium/association towards the innovation at academic/R&D institution.

Tariff issues and fiscal incentives: To provide a boost to domestic demand, the Government has reduced the mean rate of excise duty from 14% to 10% from 7 December 2008 and to 8% from February 24, 2009.

Special incentives for fabrication and other high tech IT Products: To encourage investments for setting up semiconductor fabrication and other micro and nano technology manufacture industries in India, the Government announced the Special Incentive Package Scheme (SIPS) on 21.3.2007. The scheme has received an encouraging response and seventeen proposals amounting to a total investment of Rs. 157,000 crore (1 crore = 10 million) over a period of ten years.

Special attention and priorities to electronics/IT hardware manufacturing: Electronics and IT Hardware Manufacturing Industries have been included as a thrust sector under the Foreign Trade Policy updated as on 11 April 2008.

Skill development: The Government is laying considerable importance to the skill development in the IT hardware and electronics manufacturing industry through Manufacturers’ Association for Information Technology (MAIT)

Customs

• Peak rate of basic customs duty is 10%.
• India is a signatory to the Information Technology Agreement (ITA-1) of the World Trade Organization and with effect from 1st March 2005, the basic customs duty on all the specified 217 tariff lines has been eliminated.

• All goods required in the manufacture of ITA-1 items have been exempted from customs duty subject to Actual user condition.

• Information Technology (IT) software is exempted from customs duty.

• Customs duty on specified raw materials and inputs used for manufacture of electronic components or optical fibers / cables is 0%.

• Customs duty on specified capital goods used for manufacture of electronic goods is 0%.

• Customs duty on MP3 / MP4 / MPEG4 players is 5%.

• Set top box and their major parts are exempted from basic customs duty.

• Basic customs duty on project imports is 5%.

Central Excise

• The mean rate of excise duty is 8%

• Microprocessors, hard disc drives, floppy disc drivers, CD ROM drives, DVD drives/DVD writers, Flash Memory, and Combo-drives are exempted from excise duty.

• Parts, components and accessories of mobile handsets including cellular phones are exempted from excise duty.

Central Sales Tax

Central Sales Tax (CST) has been reduced from 3 to 2% with effect from 1^st June 2008.

Foreign Direct Investment Policy

FDI up to 100 per cent through the automatic route is allowed in the IT/ITES sector in India.

Useful Weblinks

Official website of Department of Information Technology: http://www/mit.gov.in

Official website of NASSCOM: http://www.nasscom.in/Default.aspx

India-Canada Bilateral Trade

Bilateral trade figures for the quarter January-June 2009 are as under:

[Figures in thousand US dollars at the current rate]

Description	Jan-June 2008	Jan-June 2009	Percentage change
India’s Total Exports	1005,304	878,139	- 12,64%
India’s Total Imports	892,285	700,112	- 21.53%

[Source: Statistics Canada]

Ongoing global economic recession has taken its toll on India-Canada bilateral trade. India’s exports to Canada during the first half of current fiscal registered a decline of 12.64% from the same period in 2008. However, India’s imports from Canada during the same period showed a much larger decline, 21.53%. Overall bilateral trade in the first six months of 2009 registered a 16.8% decline over the same period last year.

Events

Ajanta Pharma Limited, India signed a Memorandum of Understanding with Quebec City- based Medicago Inc., a biotechnology company focused on developing vaccines based on proprietary manufacturing technologies and Virus-like Particles (VLPs), to discuss and negotiate an agreement to commercialize Medicago`s pandemic and seasonal influenza VLP-based vaccines in India and other territories. Ajanta, a global pharmaceutical company with capabilities in the areas of product research, manufacturing and marketing, has strong relationships with the Indian Government health departments, defence services and hospitals.

The Central Institute of Plastics Engineering and Technology (CIPET), India and the Centre for Biocomposites and Biomaterials Processing (CBBP), University of Toronto formalized a Memorandum of Understanding on 17 August in Toronto to initiate students and faculty exchange and research work between the two Institutes. Prof. Mohini Sain of CBBP and Dr. S K Nayak of CIPET have been designated lead coordinators from the two sides for follow-up.

According to a news report, the wholly-owned subsidiary, Minaean Habitat (India) Private Limited, of Vancouver-based Minaean International Corp. has received an order from Shell India Marketing Private Limited for the supply and installation of five gas station retail buildings. The modular retail outlets for the gas stations will be prefabricated and assembled in MHI’s Mumbai facility. The order is valued at C$ 520,000.

Tamil Nadu Agricultural University (TNAU) signed a Memorandum of Understanding with the Nova Scotia Agricultural College (NSAC) for a dual degree programme on Environmental Horticulture. Under the MoU, students at TNAU who have completed six semesters in the undergraduate agriculture or horticulture program are eligible to register for three semesters at NSAU to obtain an additional degree in Environmental Horticulture.

The Federation of Andhra Pradesh Chambers of Commerce and Industry signed a memorandum of understanding (MOU) with the Winnipeg Chamber of Commerce to enhance its relationship and to promote trade and investment, technology transfers and collaboration between Canada and India. The key sectors for Canadian companies in India include: agriculture and agri-food, infrastructure, information and communications, electric power, oil and gas and aerospace. The MOU was signed during a delegation visit led by two Deputy Ministers from the government of Manitoba in July.

Aero Club of India, an organization of flying and gliding clubs, ordered two Flight Trainers from Mechtronix Systems Inc., Montreal. The Club will use them to offer instrument rating training to its students at its training facilities in New Delhi and Patiala.

Forthcoming Events

Negotiators from India and Canada will meet on the sidelines of the 53^rd Annual Regular Session pf IAEA in Vienna (14-18 September 2009) to hold further discussion on the proposed Nuclear Cooperation Agreement between the two countries.

Visits

From India

MOS for Petroleum and Natural Gas Jitin Prasad led an Indian delegation to Calgary, Canada for the Road Show showcasing 70 exploration blocks under New Exploration Licensing Policy (NELP-VIII) and 10 blocks under the fourth bid round of Coal Bed Methane (CBM-IV). 94 participants from 50 companies/organizations including representatives from Alberta Government, companies and various business associations like India-Canada Chamber of Commerce and Calgary Economic Development, Alberta Business Council and some financial/consultancy agencies attended the event. The Indian delegates then held one-to-one meetings with local company representatives.

A delegation of 18 companies and organizations from India visited Halifax, Nova Scotia in a trade mission to Atlantic Canada from August 31 to September 4, 2009. The mission was organized by the Atlantic Canada Opportunities Agency (ACOA), Canada with the objective to promote trade between Atlantic Canada and India, build on the growing international trade potential of the Atlantic Gateway, and examine related business opportunities that can be developed in the short to medium-term. The companies taking part in the mission represent a broad cross-section of India’s economy, including sectors such as information and communications technology, manufacturing and shipping.

From Canada

Mr. Gerald Keddy, Parliamentary Secretary to Canadian Minister of International Trade Mr. Stockwell Day visited India from 31 August till 6 September 2009 to attend the informal WTO meeting held in New Delhi on 3-4 September 2009. He was accompanied by Don Stephenson, Assistant Deputy Minister and Gilles Gauthier, Director General and Chief Agriculture Negotiator. During his stay in Delhi, he called on MOS for Commerce and Industry Mr. Jyotiraditya Scindia, MOS for Finance Mr. Namo Narain Meena, Commerce and Industry Minister Mr. Anand Sharma, and MOS for S&T and PMO Mr. Prithviraj Chavan. He also inaugurated the Canadian Trade Office in Kolkata on 02 September 2009.

Forthcoming Visits

From India

Mr. Rahul Khullar, Commerce Secretary, India will lead a delegation from India for the next round of India-Canada Trade Policy Consultations scheduled to be held in Ottawa on 29-30 September 2009.

Mr. A. Manickam, Joint Secretary, Ministry of External Affairs accompanied by Dr. B N Shetty, Deputy Director General, NIC will be attending the Fifth Symposium & Exhibition on ICAO Machine Readable Travel Documents, Biometrics and Security Standards from 21 to 25 September 2009 in Montreal.

From Canada

Three separate groups from Saskatchewan Province will visit India in September. These are:

- A group to attend the `Climate Change Conference in Chennai, India during 16-18 September 2009.

- The second group will visit India to hold meetings with the Department of Biotechnology, India and the Indian Council of Agriculture Research/IARI sponsored ‘Genomic Projects’ between 28 September and 01 October 2009.

- The third group will attend the ‘Baba Centennial Celebrations – Atoms for Peace Conference’ between 29 September and 01 October 2009.

Trade Fairs etc.

“The Mining-Exploration Convention & Trade Show” at Trade Centre, KTPO, Whitefield, Bangalore, India.

The Federation of India Mineral Industries (FIMI) in cooperation with Canadian Association of Mining Equipment and Services (CAMESE) is organising “The Mining-Exploration Convention & Trade Show” at Trade Centre, KTPO, Whitefield, Bangalore, India from 16-18 September 2009. The trade show focuses on the opportunities, both international and national, provided by the shift of mining companies towards customer satisfaction and expectations. The show will feature exhibitors, professional, buyers and delegates who share a common outlook toward joint ventures, technology transfers and strategic business-to-business alliances. The Exhibitor’s Profile includes:

1) Mining and Mineral

2) Bauxite

3) Copper

4) Diamond

5) Iron Ore

6) Gold

7) Silver

8) PGM

9) Zinc

[For complete details, please access the website: www.fedmin.com]

“15^th India Carpet Expo” from 3-6 October, 2009 at Sampurnanand Sanskrit University Ground, Varanasi.

India Carpet Expo has become a world fame international fair for the buyers of handmade carpets, rugs and other floor coverings. Most of the manufacturers and exporters from main carpet producing areas like Bhadohi, Mirzapur, Varanasi, Agra, Jaipur, Panipat and Srinagar will be exhibiting their wide range of handmade carpets and other floor-coverings in the Expo. India Carpet Expo, Varanasi is not only a unique platform for business avenues of buyers and sellers but also gives an opportunity to see the manufacturing environment of carpet belts.

[For further details, please access website: www.indiancarpets.com]

“International Exhibition on Climate Change: Technology Development and Transfer” at Hotel Ashok, New Delhi, India from 22-23 October, 2009.

The Exhibition will seek to demonstrate expertise in technology scenarios both present and future; institutional and business models of development and deployment; mechanisms to promote technology transfer to developing countries; and to enhance cooperation on research and development of current as well as new and innovative technologies, and international financial mechanism to support technology development and transfer.

The two-day Conference & Exhibition will open with a high-level ministerial segment inaugurated by the Prime Minister of India. This will offer a unique opportunity to the developed and the developing countries to offer their climate-friendly technologies and services as also to showcase effective solutions appropriate to the developing countries.

The exhibition will provide a comprehensive environment to meet the sourcing needs of the industry for the latest in New/Clean Technologies, Renewable Energy Technologies, Greening of India, Biodiversity/Conservation, Green Buildings, Green Energy, water/Waste Management and many more

[For further details, please access website: www.delhiclimatechangeexhibition.in]

“India-Chem 2008” from 28-30 October, 2010 at NSE Complex, Goregaon, Mumbai, India.

India-Chem 2010, with the ultimate objective of development of the Indian Chemical Industry, is the right platform for interaction between the Indian and foreign chemical industry. The event due to its composite nature showcases the strengths of the Indian Chemical, Petrochemical and Pharmaceutical industry in products and services and simultaneously provides opportunities to formulate business alliances in form of trade and investment.

The main purpose of the fair is to encourage global scale investment in petroleum, chemical and petrochemical sectors to accelerate economic growth. It provides a right platform for the international & domestic chemical and petrochemical industry to tap the huge potential of the Indian Chemical Market.

[For further details, please access website: www.indiachem.in]

“Luxurion World 2009”

“Luxurion World 2009” earlier scheduled for 14-16 August, 2009 in Mumbai has now been rescheduled for 7-9 November, 2009 at Grand Hyatt, Mumbai, India.

As per the new plans major activities shall be as under:

Activities of event	Date	Time
Inauguration of Event	7^th November, 2009	10.00 am
Exhibition	7^th, 8^th, 9^th November, 2009	10.00 am to 8.00 pm
Luxury Forum	7^th November, 2009	10.00 am to 5.00 pm
	8^th November, 2009	10.00 am to 2.00 pm
Festival Cricket Match	7^th November, 2009	6.00 pm onwards
Net-working Dinner	8^th November, 2009	7.00 pm onwards
Display of Private Aircrafts at Mumbai International Airport	7^th, 8^th, 9^th November, 2009	TO be decided
Other entertainment programs	To be decided

[For further details, please access website: www.luxurionworld2009.com]

Pravasi Film Festival – New Delhi – 4-6 January 2010

A Non-Resident Indian film festival called Pravasi Film Festival will be held at India Habitat Center, New Delhi from 4 to 6 January 2010 coinciding with the Pravasi Bhartiay Divas. A very distinguished team of film makers, top NRIs, Diaspora personalities, eminent media persons, writers are involved with this project. The films to be screened at the festival will broadly be categorized in the following three categories:

a) Feature films

b) Documentary films

c) Short films

Another core element of the Festival is a tête-à-tête with the Diaspora filmmakers.

[For complete details, please access website: http://pravasifilmfestival.in]

“10^th Auto Expo 2010” from 5-11 January, 2010 at Pragati Maidan, New Delhi, India.

The Automotive Component Manufacturers Association (ACMA), Confederation of Indian Industry (CII) and Society of Indian Automobile Manufacturers (SIAM) is organising the “10^th Auto Expo 2010” from 5-11 January, 2010 at Pragati Maidan, New Delhi, India.

The 10^th Auto Expo 2010 will focus on the theme “Mobility for All” with special emphasis on the need of environment friendly fuels/vehicles, technological advancements, innovative designs. The Expo provides the platform for joint ventures, generating enquiries, one-to-one interaction, brand promotion, industry surveys, promoting exports, etc.

The display highlights of the fair are vehicles, components, accessories, theme pavilion, IT for auto industry, garage and garage equipments, oil and lubricants, auto electronics, leasing/financial companies, insurance companies, battery operated vehicles, CAD/CAM solutions, CNG units, coach builders/”design” vehicles, design concepts and auto finance.

[For complete details, please access website: www.autoexpo.in]

Tenders

Global Tender Notice No: CO/CONTS/0019N/FR M-I & IA New PPP/ Cont.Mines/09

The Neyveli Lignite Corporation Ltd., Office of the Chief General Manager (Contracts), Tamil Nadu, India invites tenders to carry out complete study for “Preperation of Feasibility Report & other studies in Mine-I & IA of NLC” as per details below:

Price of Tender Document: US$ 200

Bid Guarantee Amount: US$ 22,800.00

The closing of tender is on September 23, 2009 up to 1430 hrs (IST) and the tender will be opened on the same day at 1500 hrs (IST).

[Complete details of the tender and tender documents are available on NLC’s website: www.nlcindia.com]

Global Tender Notice No: SAIL/CIG/HCC/2009-10/I

The Steel Authority of India Limited (SAIL), Coal Import Group, Delhi, India has invited bids from overseas coal producers owning coal mines/overseas coal suppliers duly backed by letter of authority of the concerned coal producer for supply of 500,000 metric tonnes +/- 10% including shipping tolerance of imported freshly mined prime quality washed/unwashed hard coking coal (size 0-50mm) to be delivered during October 2009/March 2009 with the first shipment to be made in October 2009/November 2009. The minimum bid quantity shall be for supply of 200,000 metric tonne.

The closing of tender is on 29 September, 2009 up to 1200 hrs and the date of opening of tender is immediately after the expiry of the deadline for submission of bids.

[Complete details of the tender and tender documents are available on website: www.sailtenders.co.in.]

Global Tender Notice No. MR/ES/MM/11/2009-10

The Oil and Natural Gas Corporation Limited, Office of GM (MM), Engineering Services (Offshore), Mumbai, India invites tenders for “Hiring of Services for Geophysical survey and geotechnical Survey in deep waters of S1, Vashishtha and Manik fields of East Coast of India” as per details below:

Tender Fee: USD 1000.00

EMD: Part I – USD 37230.00 (Geophysical Survey)

Part II – USD 53900.00 (Geotechnical Survey)

The closing of tender is on October 21, 2009 up to 1400 hrs (IST) and the tender will be opened on the same day at 1500 hrs (IST).

[Complete details of the tender and tender documents are available on ONGC’s website: https://etender.ongc.co.in]

Global Tender Notice No. B28BC09001

The Oil and Natural Gas Corporation Limited, India invites tenders under Two Bid System for “Supply of Permanent Packer Assemblies” as per details below:

Tender Fee: USD 100.00

EMD: USD 4000.00

The closing of tender is on October 21, 2009 up to 1400 hrs (IST) and the tender will be opened on the same day at 1500 hrs (IST).

[Complete details of the tender and tender documents are available on ONGC’s website: https://etender.ongc.co.in ]

Global Tender Notice No. OLF/MM-II/T-0906040196

The Opto Electronics Factory, Office of the General Manager, Raipur, Dehradun, India invites tenders under two bid system from reputed suppliers/manufacturers of Lenses & Prisms for the supply of following 04 types of Optics as per the details below:

Description	Qty.
1) Lens Assy. To Drg. No. BSH5930313 2) Finished Lens to Drg. No. BSH7526010 3) Prism (Finished) to Drg. No. BSH7200102 4) Finished Lens to Drg. No. BSH7538010 Delivery starts immediately after placement of supply order and opening of Letter of Credit and to be completed within 03 months.	10) 1000 11) 1000 12) 480 13) 1000

Tender Fee: USD 20.00

EMD: USD 4000.00

Last date for receipt of application is 24 October, 2009 up to 1500 hrs (IST).

[Complete details of the tender and tender documents are available on Opto’s website: www.ofb.gov.in]

Published by : High Commission of India, Ottawa, Canada

Editor : Deputy High Commissioner

Sub-Editor : Second Secretary (Com)