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December 5, 2012
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Export growth reached the annual target, though recent months show a slowdown and regional diversification into non-traditional sectors.
The government reported that the annual export target was achieved with overall export growth of about fifteen percent, though April-September data show a slowdown. Regional export growth varied across West Asia (including GCC and other West Asian states), ASEAN and other South Asian countries. Exports have diversified, with increases in non-traditional sectors including leather, electronics, chemicals and services, as stated by the Minister of State for Commerce & Industry in a written parliamentary reply.
December 5, 2012
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Minimum Alternate Tax applicability to SEZs prompts investment slowdown and increases SEZ denotifications and uncertainty.
The imposition of Minimum Alternate Tax on Special Economic Zone developers and units from 1 April 2012 removed prior MAT and related exemption benefits, producing a less certain fiscal regime for SEZs and altering tax treatment for developers and units.
December 5, 2012
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Export policy for agricultural produce balances domestic food security with export growth, noting modest export share.
Policy on export of agriculture produce conditions exports on domestic stock levels, surplus over buffer norms, strategic reserve requirements, food security, consumer availability at reasonable prices, remunerative returns to growers, and international price competitiveness. The release cites APEDA data showing year-on-year growth in export values for fruits and vegetables, while observing that exports represented a very small share of total domestic production in 2010-11.
December 5, 2012
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Trade deficit with China driven by export contraction and import composition shifts, affecting bilateral trade dynamics.
India's trade deficit with China widened as imports exceeded exports and exports fell significantly in April-September 2012; export declines were linked to reduced shipments of iron ores, minerals, plastics, dyes, chemicals, petroleum products, electronics, ferro alloys, pharmaceuticals and transport equipment, while provisional import declines reflected lower imports of machinery (except electrical and electronics), iron and steel, transport equipment, resins, plastic materials, non ferrous metals, inorganic chemicals and gold.
December 5, 2012
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Export ban on poultry products halts shipments to multiple countries due to avian influenza import restrictions.
A ban on importation of poultry products by several trading partners has resulted in an immediate cessation of poultry exports from India to those jurisdictions, halting outbound shipments of poultry products as the operative effect of foreign import restrictions adopted in response to avian influenza concerns.
December 5, 2012
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Almond import growth drives higher customs revenue and shows a short term seasonal increase in imports compared to prior year.
Increase in almond imports and associated customs revenue is reported across successive years, with annual import volumes, growth rates and corresponding revenue receipts tabulated; the 2012-13 figures are provisional. A seasonal comparison notes a 5.62% increase in imports for April-September 2012-13 over the same period in 2011-12. The data were provided in a written parliamentary reply by the Minister of State for Commerce & Industry for legislative information.
December 5, 2012
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Quality of Service obligations require wireless providers to deploy tests, meet data-performance benchmarks and publish service tariffs online.
The Regulations require wireless data service providers to deploy servers and test probes covering each licensed area and to meet prescribed benchmarks for provision/activation, successful upload/downloads, minimum download speed, average packet-data throughput, latency, PDP context activation success rate, and data drop rate. Providers must publish all data services and tariffs on their websites, indicating applicable cities and towns, and must not introduce or modify services or tariffs without prior website publication.
December 4, 2012
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Assistance for cold storages expanded through multiple central schemes, offering grants and fiscal concessions to set up capacity.
The Government proposes to enhance national cold storage capacity by providing assistance and fiscal concessions to entrepreneurs for setting up cold storages, delivered on a project-based basis through grant-in-aid under specified central schemes and by offering service tax, excise and customs duty concessions to promote storage infrastructure.
December 1, 2012
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Index of Eight Core Industries shows 6.5% growth in October 2012, driven by coal and refinery output.
The Index of Eight Core Industries for October 2012 was 151.2 (base 2004 05=100), up 6.5% year on year; the eight sectors account for 37.90% of IIP. October's increase was driven mainly by double digit growth in Coal and Petroleum Refinery Products. Cumulative growth for April-October 2012-13 was 3.7% versus 4.3% a year earlier, with Coal and Refinery Products showing positive cumulative gains while Natural Gas and Fertilizers registered cumulative declines. Data are provisional and detailed sectoral indices and growth rates are annexed.
November 30, 2012
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Unrestricted export of wheat and non-basmati rice continues to boost export competitiveness and foreign exchange earnings.
The Cabinet Committee on Economic Affairs approved continuation of unrestricted export of wheat and non-basmati rice, on the basis of adequate domestic availability; the proposal was moved by the Department of Commerce and aims to maintain market access for exporters, enhance export competitiveness of these cereals internationally, and promote foreign exchange earnings.
November 29, 2012
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Export duty on iron ore increased to discourage exports and promote domestic beneficiation and pelletisation.
The Government implemented fiscal measures to encourage domestic beneficiation and pelletisation of iron ore by reducing the Basic Customs Duty on imported plants and equipment for pellet and beneficiation plants to 2.5% and by withdrawing export duty on pellets, while increasing export duty on raw iron ore to discourage exports and conserve resources for the domestic iron and steel industry.
November 29, 2012
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Import and export of finished steel permitted to address supply-demand mismatch; imports showed a marginal increase last year.
Import and export of finished steel is permissible to address mismatches between domestic supply and demand; reported trade data show a marginal increase in finished steel imports, and domestic consumption was lower than production in the latest year, indicating aggregate domestic output exceeded real consumption while trade remained available to meet imbalances.
November 27, 2012
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Foreign investment permission in cold storage allows full FDI under automatic route with a back end infrastructure investment requirement.
Foreign Direct Investment permission for cold storage facilities authorises full foreign investment under the automatic route, subject to a specified minimum investment and an obligation that a majority proportion of total FDI be deployed into back-end infrastructure within three years of the initial tranche; back-end infrastructure includes capital expenditure on all activities other than front-end units.
November 27, 2012
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Food processing sector performance reveals low processing levels, significant post harvest losses and modest export share overall.
The food processing sector exhibits low processing intensity with marked harvest and post harvest losses, a modest global export share, and reported GDP contribution figures for three consecutive years, provided as baseline data under the Vision 2015 strategy.
November 27, 2012
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Grant-in-aid for cold chain projects expands private and cooperative infrastructure, with differential support and multi-agency assistance.
Approval of 62 cold chain projects authorises private and cooperative entities to establish post-harvest cold chain and value addition infrastructure under the Ministry's Scheme for Cold Chain, Value Addition and Preservation Infrastructure, making such projects eligible for grant-in-aid. The scheme provides tiered financial support for plant and machinery and technical civil works, with higher support in designated difficult areas and a prescribed maximum cap. Complementary assistance may also be available from other government agencies and state schemes.
November 27, 2012
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Price pooling of coal: imported supplies set at domestic GCV parity, with import cost absorbed into domestic coal pricing.
Price pooling would have the domestic supplier import coal and supply it to power stations at GCV parity with domestic coal, with allocation based on plant location for facilities holding long term power purchase agreements, and the additional cost borne through loading the domestic coal price to prevent revenue loss for the supplier.
November 27, 2012
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Coal supply shortfall prompts combined domestic production and import strategy to secure national energy requirements.
A projected shortfall between coal demand and domestic output under the XII Five Year Plan necessitates a dual approach: accelerate domestic production via new public sector projects and captive mining blocks, while supplementing supplies through imports. Import activity and associated expenditure over recent years are reported to contextualise the strategy, showing imports as a complementary mechanism to meet immediate shortfalls alongside planned capacity expansion.
November 26, 2012
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Capital goods industry growth urged to reduce imports through domestic manufacturing, policy support, and R&D emphasis.
Strengthening the capital goods industry is presented as essential to reduce import dependence by developing domestic manufacturing capacity, with supply-side priorities of uninterrupted power and domestic steel production. A holistic policy package is being prepared to promote the sector as a manufacturing and export hub through public-private alignment, export incentives, a shift to cyclical manufacturing models, and focused R&D and innovation to convert industry signals into tangible product and process outcomes.
November 26, 2012
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Export duty on iron ore increased to discourage exports and secure domestic supply, with pellets exempted.
The Government raised the export duty on iron ore effective 30-12-2011 to discourage exports and improve availability of iron ore to the domestic iron and steel industry at affordable prices; the increase applies to all grades of iron ore except pellets. Steel remains a deregulated sector where domestic prices are decided by individual producers based on market conditions, international price trends and input costs.
November 26, 2012
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Export duty on iron ore maintained; exports permitted subject to ad valorem duty while promoting value added shipments.
No ban is proposed on the export of iron ore; exports are permitted subject to an ad valorem export duty. The announcement notes substantial national reserves and limited domestic use of fines, and it directs export policy to balance inventories and national needs while promoting value added mineral exports.

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