Thursday 17 October 2013

September 2013 Bilateral Affairs | Current Affairs 2013 | Bilateral Affairs 2013 | September 2013 India and the World |

After continuous round of dialogues between the two trading partners India and China, both the allies have agreed to strengthen the coordination in various policies. This was the outcome of the sixth China-India Financial Dialogue held on 26th September, in Beijing."Both sides agreed to strengthen regular communication and coordination at various levels on macro-economic policies and major international economic and financial issues", said the press release. After signing the Memorandum of Understanding (MoU) on 'Launching the Financial Dialogue between China and India' in April 2005, both the countries had held five rounds of dialogues prior to this. In the recent dialogue, the two sides deeply discussed new challenges facing the global economy, macro-economic situations and policies in China and India."Both sides recognized that global economic recovery was still fragile with downside risks remaining high", the statement noted. It was discussed that with growth picking up in advanced economies, there is a need for these countries to collaborate with other emerging countries on the pace and timing of recalibration of their unconventional monetary policies and strengthen communication with the market to avoid the spillovers. Also, it was agreed to hold the 7th India-China Financial Dialogue in 2014 in New Delhi.

Mr. Rafael Ramirez, Minister of Energy and Mines of Venezuela visited India for discussions with his counterpart, Dr. M. Veerappa Moily, Minister for Petroleum and Natural Gas, Government of India. In the meeting held on 24th September, the two Ministers reviewed on-going cooperation in the hydrocarbons sector. It was recognised that Venezuela and India have shared a very robust relationship in the hydrocarbon sector ever since the visit of former President of Venezuela Mr. Hugo Chavez to India in 2005. Minister Ramirez appreciated participation by Indian companies in the upstream exploration and production sector and also the companies that were major off takers of Venezuelan crude oil. He expressed that Indian oil and gas companies were very well accepted in Venezuela and encouraged the Indian oil and gas companies to scale up their participation in the prolific Venezuelan oil and gas sector. The Indian side expressed difficulties faced by oil companies in terms of registration of refinery, finalisation of pricing formulae and signing of term contracts for import of crude oil from Venezuela. The Indian side also highlighted difficulties faced by Indian companies working in the Venezuelan E&P sector in the joint venture mode with regard to delayed payment of dividend to the JV partners. The Venezuelan side noted the difficulties and assured to address the concerns raised. Minister Moily highlighted the increasing appetite of crude oil of Indian refineries and requested for long term tie up for supply of crude oil from Venezuela. Upon request from Minister Moily for enhanced participation by a joint venture of Indian public and private sector oil and gas companies in the upstream oil and gas sector of Venezuela, Minister Ramirez welcomed the suggestion and agreed to carry forward this initiative. Both sides agreed to finalising a comprehensive package for collaboration not only in the oil and gas sector but also for participation by Indian companies in providing expertise for development of infrastructure and technology, as well as boosting trade in goods and services between the two countries.

India and China have agreed to initiate steps to include Media Cooperation as part of 2014 celebrations being observed to commemorate “Friendly Exchanges” between the two countries. Both the countries agreed to proactively consider steps to promote high level media exchanges and facilitation between the two nations. It has also been agreed to outline a roadmap to include specific projects / proposals as part of the initiative under the Media domain to be considered under activities to mark the commemoration of “Friendly Exchanges” celebrations. Both sides agreed that media could play an important role in acting as a bridge for better cooperation between the two countries by highlighting the positive aspects of the bilateral relationship. This was agreed upon during the meeting between Manish Tewari, Minister for Information and Broadcasting and Mr. Cai Ming Zhao, Minister of State Council Information Office. The Chinese Minister met Tewari with a High level delegation in New Delhi on 16th September. During the discussions between the two delegations it was also agreed to explore possible areas of cooperation in the field of Capacity Building, Co-production Agreements related to Films, sharing of the experience of institutionalizing Digitization in the Broadcasting sector and enhanced participation during the Film Festivals being held in both countries.

The Government of India on 18th September, signed an Agreement and the Agreed Note for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (DTAA) with the Government of Latvia. The Agreement and the Agreed Note were signed by Salman Khurshid, External Affairs Minister, on behalf of the Government of India and Mr. Edgars Rinkevics, Minister of Foreign Affairs, on behalf of the Government of Latvia in New Delhi. Latvia is the third Baltic country with which DTAA has been signed by India. Earlier DTAAs have been signed and have come into force with Lithuania and Estonia. The DTAA provides that business profits will be taxable in the source if the activities of an enterprise constitute a permanent establishment (PE) in the source state. The Agreement provides for fixed place PE, building site, construction or assembly PE, service PE, Off-shore exploration/exploitation PE and agency PE. The Agreement further incorporates provisions for effective exchange of information between tax authorities of the two countries in line with latest international standard, including exchange of banking information and supplying of information without recourse to domestic interest. Further, the Agreement provides for sharing of information to other agencies with the consent of supplying state. The Agreement also has an article on assistance in collection of taxes. This article also includes provision for taking measures of conservancy. The Agreement incorporates anti-abuse (limitation of benefits) provisions to ensure that the benefits of the Agreements are availed of by the genuine residents of the two countries. The Agreement will provide tax stability to the residents of India and Latvia and will facilitate mutual economic cooperation between the two countries. It will also stimulate the flow of investment, technology and services between India and Latvia.

India has offered to help Cuba to develop its renewable energy resources. This was conveyed by Dr. Farooq Abdullah, Minister of New and Renewable Energy to Mr. Marino Murillo, Vice president of the Republic of Cuba at Havana on 20th September. Dr. Farooq Abdullah is visiting Cuba along with a high level delegation of experts to explore greater opportunities for cooperation and collaboration between the two countries. Dr. Abdullah also held detailed discussions with Mr. Alfredo Lopez Valdes, the Cuban Minister of Energy and Mines. Dr. Abdullah briefed his counterpart on the energy situation in India and India’s ambitious plans in renewable energy. He explained that India currently has over 29 GW of grid-connected installed capacity using renewable sources of energy and that it has plans over to add over 30 GW more capacity by 2017. He also dwelt on the success of India’s wind programme as well as the significant cost reductions in solar energy through the Jawahar Lal Nehru National Solar Mission (JNNSM).

India and Japan have resolved to strengthen cooperation in the tourism sector. This was decided at a meeting between the visiting Japanese Senior Vice Minister of Land, Infrastructure, Transport and Tourism, Mr. Hiroshi Kajiyama and Minister of State for Tourism(I/C), Dr. K. Chiranjeevi in New Delhi on 3 September. The two sides agreed to move further on signing an MOU to promote bilateral tourism relations. Dr.Chiranjeevi informed his Japanese counterpart about the various measures being taken to improve Golf Tourism and MICE Tourism in India, which may be attractive to Japenese tourists and businessmen. Indian Tourism Minister invited Japan to invest in the low budget hotel sector where India has liberalized the FDI route. Dr. Chiranjeevi told his Japanese counterpart that there was a good potential for budget hotels for tourists coming from across the world to India. Mr. Kajiyama said that the proposal for investments in the budget hotel sector could form a part of the MOU between the two countries. The Japanese Sr. Vice Tourism Minister said that he would like to lead a delegation of businessmen from Japan in the next meeting in which he hoped to conclude the agreement/MOU with India. Mr. Kajiyama informed that two Japanese airlines are operating daily flights between India and Japan, which is an indication of the gravity of tourist traffic between countries. Japan has set for itself a target of attracting 10 million visitors from across the world to Japan. Japan Tourism is organizing a world class two-day INDIA-JAPAN TOURISM EXPO in New Delhi on 13 to 17 January, 2014.

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