Banking sector review panel will align future growth with financial stability, inclusion and consumer protection through government recommendations. High Level Committee on Banking for Viksit Bharat is proposed to comprehensively review the banking sector and align it with India's next phase of growth. It is intended to safeguard financial stability, financial inclusion and consumer protection, while providing views and recommendations to the Government on banking-sector development and reform.
Prime Minister Internship Scheme enhances youth employability through paid industry exposure, cross-field learning, workplace readiness and potential full-time employment. The Prime Minister Internship Scheme provides paid internships with leading companies across India to improve youth employability through practical workplace exposure, industry experience and skills development. It addresses the gap between classroom learning and employers' expectations of workplace readiness. Participation is not confined to academic qualifications, allowing youth to pursue fields of interest and gain hands-on professional learning. Strong internship performance may lead to full-time roles, while the scheme stresses responsible work where errors may affect quality, consumer safety and organisational reputation.
SAFTA origin fraud in areca imports allegedly enabled improper duty exemption through false Bangladeshi-origin declarations. SAFTA preferential duty treatment for areca-nut imports was allegedly misused by falsely declaring goods originating in South-East Asian countries as Bangladeshi origin. Since areca nuts normally attract 100% basic customs duty, the scheme sought to obtain the full SAFTA exemption reserved for qualifying Bangladeshi goods meeting Rules of Origin requirements. The alleged mechanism included routing goods through Bangladesh, changing containers and bags, using improperly obtained Certificates of Origin, and facilitating clearance through importers, Customs Brokers and IEC holders. Investigative findings also indicated cash proceeds, hawala channels and dummy entities.
FCNR(B) concessional swap facility closure may reduce temporary foreign-currency inflow support and heighten rupee weakness concerns. The Reserve Bank of India restricted its concessional swap facility for FCNR(B) deposits to deposits mobilised by August 31, advancing the earlier cut-off date. The facility was intended to encourage foreign-currency inflows, while banks mobilise such deposits through attractive interest rates. Market commentary indicated that existing inflows may support the rupee in the near term, but the curtailed availability of the facility could reduce this temporary cushion and increase depreciation risk.
Temporary tariff suspension for earthquake recovery is sought to ease pressure on affected Colombian businesses. Temporary suspension of high tariffs on Colombian products has been sought to support business recovery following a severe earthquake declared a natural disaster. The request links tariff relief to economic disruption affecting businesses amid extensive destruction, injuries and missing persons. United States emergency assistance has been provided through food, shelter and health supplies, while no response to the tariff-suspension request had been reported.
Port-led industrial development and direct export operations aim to expand logistics infrastructure, market access and trade connectivity. Mission Samudra is proposed as a port-led industrial and logistics development programme linked to the commencement of export-import operations at Vizhinjam seaport. It covers industrial clusters, new cities, port connectivity, logistics, development initiatives, programme management and capacity building. Direct export shipments are intended to improve overseas-market access and reduce transit time and logistics costs, particularly for small and medium enterprises. The framework also anticipates growth in warehousing, cold storage, container freight stations and logistics parks, supported by private participation and road and rail connectivity.
Electric vehicle export diversification strengthens India's presence across European, Asia-Pacific and Latin American markets through expanding overseas demand. India's electric motor car exports expanded sharply in the first quarter of 2026-27, reflecting increased international acceptance and competitiveness of India-manufactured electric vehicles. Europe became the principal export destination, led by Spain and the United Kingdom, with further demand across several European markets. Exports also reached Asia-Pacific markets, Nepal and emerging Latin American destinations. This wider market presence reflects improving quality and safety standards, stronger integration into global electric-vehicle supply chains, and diversification of India's electric-vehicle export profile.
LPG production preparedness requires refiners and upstream producers to maintain capacity and increase output during supply constraints. Government has established a standing LPG production preparedness framework under which refining companies, oil marketing companies and upstream producers may be directed to increase production during supply constraints. Companies must maintain adequate LPG storage, evacuation and transportation infrastructure and pursue technically and economically feasible production-enhancing measures. Written directions may prescribe production quantities and periods, including restrictions on alternative uses of input streams required for LPG. The production schedule is updated twice yearly to reflect new facilities and added capacity from infrastructure, technology and distribution improvements.
Free trade agreement market access requires MSMEs, farmers and exporters to meet global quality standards. Free trade agreements expand market-access opportunities for Indian MSMEs, exporters and producers through reduced or eliminated import duties on traded goods. Textiles, machinery, medicines, seafood and agricultural products can access international markets where they meet global standards and remain competitively priced. Farmers and producers are encouraged to develop export-oriented products, including chemical-free agricultural produce, while MSMEs may use preferential trade access to support manufacturing, exports, employment and growth.
Chemical-free farming can strengthen agricultural exports by meeting global standards and responding to rising international demand. Chemical-free farming is urged to meet growing global demand and expand agricultural exports. Agricultural products must meet global parameters to facilitate access to international markets, including markets opened through free trade agreements. Food processing, export-oriented farm production, and global branding of traditional cuisine, millets, spices, fruits and flowers are identified as important elements of agriculture and food production policy.
Voluntary foreign asset disclosure allows eligible taxpayers to regularise overseas holdings with immunity from further tax, penalties and prosecution. FAST-DS permits eligible taxpayers to disclose specified undisclosed foreign assets, foreign income, and foreign assets omitted from return schedules. Undisclosed assets or income not previously offered to tax may be declared up to Rs 1 crore on payment of an effective 60 per cent levy, based on fair market value as of 31 March 2026. Assets already offered to tax, or acquired during non-resident status but omitted from the return schedule, may be declared up to Rs 5 crore on payment of a fee. Valid declarations provide immunity from further tax, penalty and prosecution, while declared amounts are excluded from total income.
Global pharmaceutical leadership is urged through Indian firms achieving top-five status, supported by generic manufacturing and export capacity. Indian pharmaceutical companies are urged to attain representation among the world's five leading pharmaceutical firms, despite India's established position as a major producer of generic medicines. India has a broad manufacturing base, supplies generic medicines across numerous therapeutic categories, and exports to worldwide markets including highly regulated jurisdictions. Although pharmaceutical exports and the domestic market have expanded, Indian firms have not yet secured positions among the largest global companies. Greater international scale may be supported through acquisitions and expanded established-brand and branded-generic operations.
Foreign asset voluntary disclosure permits eligible small taxpayers to regularise qualifying assets through tax, additional levy, and statutory immunity. FAST-DS permits eligible small taxpayers to voluntarily disclose specified foreign assets or foreign income. It covers undisclosed foreign assets or income not offered to tax, subject to an aggregate value threshold of Rs 1 crore, and certain foreign assets omitted from the relevant return schedule, subject to a Rs 5 crore threshold and prescribed fee. Payment comprises 30 per cent tax and an additional equal amount. Disclosed income or investment is excluded from total income, with immunity from further tax, penalty and prosecution under the Black Money Act for the disclosed asset or income.
Free trade agreement opportunities require MSMEs to meet global standards and expand exports across textiles, machinery, medicines and seafood. Free trade agreements are presented as export-market opportunities for Indian MSMEs because they reduce or eliminate import duties on a substantial range of traded goods. MSMEs are urged to expand exports of textiles, machinery, medicines and seafood, including shrimp, by meeting global quality standards and offering products competitively. Their export role is linked to self-reliance and their significant contribution to manufacturing, exports, GDP and employment.
Windfall gains tax on petroleum exports was reduced to support domestic fuel availability and limit export price advantages. Special additional excise duty (windfall gains tax) on exports of petrol, diesel and aviation turbine fuel was reduced from 15 August 2026. Petrol export duty was reduced to nil, and export-duty rates on diesel and ATF were lowered. Duty rates for petrol and diesel cleared for domestic consumption remained unchanged. The export-duty framework seeks to maintain domestic petroleum-product availability and limit export advantages arising from higher global crude oil prices amid West Asia tensions.
Energy self-reliance drives diversified fuel sourcing, expanded offshore exploration, and domestic capacity to reduce geopolitical supply vulnerability. Energy security policy seeks to reduce exposure to geopolitical pressure and supply disruption caused by dependence on overseas fuel and strategic maritime routes. India is diversifying crude oil and LNG sourcing while strengthening domestic hydrocarbon production through offshore exploration, seismic surveys, exploratory drilling and shared infrastructure. Expanded access to sedimentary basins is intended to unlock domestic oil and gas resources. Wider piped natural gas coverage, solar generation, critical-mineral exploration, and nuclear and other non-fossil energy sources support the broader objective of energy self-reliance.
Current account deficit widened as merchandise trade imbalance expanded, despite stronger services surplus, transfers, and positive capital inflows. India's current account deficit widened in June 2026, principally because merchandise imports increased faster than exports and expanded the merchandise trade deficit. A higher services surplus, increased net transfers and a narrower net income deficit provided partial offsets. Net capital inflows, including foreign direct investment and foreign portfolio investment, supported a positive overall monthly balance. During the April-June quarter, despite increased services surplus and net transfers, the overall balance shifted to a deficit as the merchandise trade deficit widened.
Concessional foreign-currency swap facility closes early for new FCNR(B) deposits while ECB and OFCB access remains available. The concessional swap facility for FCNR(B) deposits encourages foreign-currency inflows and supports foreign-exchange liquidity. New FCNR(B) deposits eligible for the facility must be mobilised by 31 August 2026, while swaps for eligible deposits may be availed until 11 September 2026. The swap arrangement for External Commercial Borrowings and Overseas Foreign Currency Borrowings remains available until 31 December 2026.
Insurance grievance redressal requires initial insurer complaint, prompt acknowledgement, and escalation through integrated monitoring channels when resolution remains unsatisfactory. Insurance policyholder grievances must first be raised with the concerned insurer, whose Grievance Redressal Officer and Board-level monitoring committee oversee redressal. Complaints received through digital channels, correspondence or call centres are recorded in the insurer's Complaints Management System, integrated with Bima Bharosa. Insurers must acknowledge complaints immediately and resolve them within 14 days. Where no response is received within a reasonable period or the response is unsatisfactory, policyholders may escalate through Bima Bharosa or designated helplines, email or physical correspondence.
Foreign exchange reserve growth reflects increases in foreign currency assets, gold holdings, special drawing rights, and IMF reserve position. India's foreign exchange reserves rose to USD 707.002 billion for the week ended 7 August 2026. The increase comprised higher foreign currency assets, gold reserves, special drawing rights and the reserve position with the IMF. Foreign currency asset valuation incorporates appreciation or depreciation of non-US currencies held in reserve assets. Measures including the FCNR(B) scheme were introduced to attract additional foreign exchange inflows.
FM Calls for Collective and Collaborative Approach Not Unilateralism to Deal with any Global Crisis - Negotiations on for India-US Bilateral Investment Treaty: FM
November 9, 2010
Contents
Summary
Note
Bookmark
Share
✓ Copied successfully !
Print
Print Options
For full text, please login
Login to TaxTMI
Verification Pending
The Email Id has not been verified. Click on the link we have sent on
Union Finance Minister, Shri Pranab Mukherjee said that we are all witnessing to an emerging new world order where there is a higher degree of interdependence amongst nations and more dynamic and equitable arrangement for prosperity. Shri Mukherjee said that we have learnt a lesson from the current global crisis that remedy lies in collective and corroborative approach-not in unilateralism. Shri Mukherjee was addressing the Indo-US CEOs Forum meeting, here today. Shri Mukherjee said that in our anxiety to solve problem in one part of the World, we should not create greater problems in other parts of the World and more so in the Emerging Markets Developing Countries (EMDCs).
The meeting was attended by US Treasury Secretary, Mr. Timothy Geithner, Commerce Secretary Gary Locke, Agriculture Secretary Thomas Vilsack from US side and Commerce and Industry Minister Shri Anand Sharma, Deputy Chairman, Planning Commission Shri Montek Singh Ahluwalia from Indian side among others. Besides, the meeting was also attended by the CEOs of different US and Indian Companies, part of Indo-US CEOs Forum.
The Finance Minister said that India has emerged as an attractive global investment destination. He told that in infrastructure sector alone, the investment requirement is US dollar 514 billion for the Eleventh Plan (2007-08 to 2011-12), out of which almost 30% of this investment is envisaged to come from private sources. Shri Mukherjee further said that for the Twelfth Five Year plan (2012-13 to 2016-17), the investment in infrastructure is envisaged at US dollar 1 trillion. He told that this magnitude of investment would require innovative modes of financing.
As far as Indo-US bilateral relations are concerned, the Finance Minister said that economic policy, finance and trade constitute important planks of our relationship. Shri Mukherjee said that for us, the US remains a prime source of investment, technology and an important trading partner. He said that as we make efforts to increase investment in infrastructure, and give a fresh impetus to the manufacturing sector, the importance of our partnership with the US will increase. This mutually beneficial engagement would stimulate innovation, spur job creation, and promote sustainable and inclusive growth in our countries, the Minister added.
Shri Mukherjee said that we have set-up a Committee to consider the recommendations of the Indo-US CEO's Forum under the Chairmanship of Deputy Chairmanship of Planning Commission and the Committee has already met twice. He said that Treasury Secretary Mr. Geithner and he launched the Financial and Economic Partnership when Mr. Geithner visited Delhi in April this year. The Finance Minister said that the Partnership will strengthen engagement in economic, financial and investment related issues. He further added that both the countries are currently negotiating a Bilateral Investment Treaty and are committed to take further initiatives that will contribute to creating a more conducive environment for investment flows.
The Finance Minister, Shri Mukherjee concluded his opening remarks by reiterating his Government's as well as his personal commitment as the Finance Minister to look into the Forum's recommendations.
The complete text of the opening remarks made by Finance Minister, Shri Pranab Mukherjee while addressing Indo-US CEOs Forum Meeting is given below:
"I welcome you to India and thank you sincerely for travelling to Delhi for the meeting of the CEOs Forum. We look forward to this forum both to identify areas for cooperation and to suggest how government can help the industry achieve the goals. We had a productive meeting in June in Washington DC and I am glad that we are able to meet again on this historic occasion of President Obama's visit to India. There was an extremely successful business summit in Mumbai as well as round tables with CEOs and entrepreneurs. As President Obama said in Mumbai and our Prime Minister has said repeatedly, our two sides agree that we must give the highest priority to fully harnessing the enormous potential for economic cooperation.
I greatly value your engagement and support to help build a shared vision of the Indo-US partnership. This forum has emerged as an important platform for our two countries to focus on challenges and issues of common interest, for expanding our bilateral trade and investment, for the stability of the global financial system, to promote research and technology development and work in the areas of education and public health.
As we meet here today, the world economy is showing signs of emerging from the global slowdown following one of the deepest downturns that we have witnessed in recent times. The pace and shape of the recovery across countries, both in the developed and the emerging world, is however varied and perhaps uncertain in some instances. At home, we have done better than what was perhaps anticipated. While we have got certain things right, there are others that need our attention and follow-up, both at the international as well as the national levels.
The financial crisis has compelled us to rethink some of the basic principles of economics and finance, the functioning of financial markets and the global economy. Leaders of the G20 countries have come together to discuss global financial instability and the resulting economic slowdown. They are finding ways to ensure better regulation of markets, strengthening the monitoring and response mechanisms to global developments and promoting growth in a sustainable manner. This is a big change. Indeed, we are all witness to an emerging new world order where there is a higher degree of interdependence amongst nations and, hopefully, there is also a more dynamic and equitable arrangement for global prosperity. One lesson we are to learn from this global crisis is that, remedy lies in collective and collaborative approach- not in unilateralism. In our anxiety to solve problem in one part of the World , we should not create greater problems in other parts of the World and more so in the EMDCs.
India has emerged as an attractive global investment destination. In infrastructure sector alone the investment requirement is US dollar 514 billion for the Eleventh Plan (2007-08 to 2011-12). Almost 30% of this investment is envisaged to come from private sources. For the Twelfth Five Year plan (2012-13 to 2016-17), the investment in infrastructure is envisaged at US dollar 1 trillion. This magnitude of investment would require innovative modes of financing.
Economic policy, finance and trade constitute important planks of our bilateral relations. For us, the US remains a prime source of investment, technology and an important trading partner. As we make efforts to increase investment in infrastructure, and give a fresh impetus to the manufacturing sector, the importance of our partnership with the US will increase. This mutually beneficial engagement would stimulate innovation, spur job creation, and promote sustainable and inclusive growth in our countries.
We have set -up a Committee to consider the recommendations of the Indo-US CEO's Forum under the Chairmanship of Deputy Chairmanship of Planning Commission and the Committee has already met twice.
You are all aware that Secretary Geithner and I launched the Financial and Economic Partnership when he visited Delhi in April this year. The Partnership will strengthen engagement in economic, financial and investment related issues. We are currently negotiating a Bilateral Investment Treaty and are committed to take further initiatives that will contribute to creating a more conducive environment for investment flows.
I look forward to hearing from you in the days ahead, and to working with you. Let me reiterate my Government's and my personal commitment as The Finance Minister to look into the Forum's recommendations. Thank you for joining us today and I wish you all the best in your endeavours".
Bilateral Investment Treaty negotiations aim to deepen economic partnership and improve the investment environment between the countries.
A policy statement urging a collective and collaborative approach to global crises to avoid spillovers to Emerging Markets, highlights India's large infrastructure financing needs and the need for innovative financing and private participation, and describes institutional measures to deepen Indo US economic engagement including a Committee to consider CEOs Forum recommendations, a Financial and Economic Partnership, and ongoing negotiations of a Bilateral Investment Treaty to foster a more conducive investment environment.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 3379 
