COMMERCE MINISTER'S
ADDRESS AT INDO-ROMANIAN JOINT COMMISSION AND JOINT BUSINESS COUNCIL
AT BUCHAREST
The following is the full text of
Shri Murasoli Maran, Union Commerce & Industry Minister’s
address at the Joint Meeting of 15th Session of Indo-Romanian
Joint Commission and 8th Session of Joint Business
Council at Bucharest:
"His Excellency Mr. Dan Ioan Popescu,
distinguished members of the Romanian delegation, colleagues from
the Indian delegation, representatives from business and industry
in Romania and India and friends.
2. I feel honoured today to be present
here for the Joint Inaugural Session of the 15th Session
of Indo-Romanian Joint Commission and 8th Meeting of
the Joint Business Council. It is a privilege for me and the members
of my delegation to be participating in these meetings in the
beautiful city of Bucharest.
3. I would first of all like to thank
you, Excellency, for your most gracious hospitality and warm words
of welcome.
4. Indo-Romanian
relations date back from history. The strength of our relationship
is time-tested and our bilateral relations have always been warm
and friendly. Our relations with the new, democratic Romania
continue to be warm and friendly.
5. I am happy that the Joint Commission
and the Joint Business Council are simultaneously meeting to explore
new dimensions in our bilateral trade and investment adding further
strength to the existing economic cooperation between our two
friendly countries.
6. In the Meeting held yesterday
by the officials from both sides, the Indian side has given a
full exposition of strengths and opportunities of the Indian economy
and outlined the potential of cooperation with Romanian business
and industry. However, Excellency, I would like to take this opportunity
to briefly touch upon the economic scenario of India.
7. Despite the general downturn in
the world economy after the terrorist attacks in United States
in September 2001, Indian economy managed to sustain a growth
rate at 5.4 per cent in 2001-02. This was only moderately lower
than our trend growth of 6 per cent per annum over the decade.
Analysts are predicting that we would register a growth of 6 to
6.5 per cent again in this fiscal. We are one of the top three
fastest growing economies in the world and as one economist points
out, and we believe, we would be a potential ‘Growth Star’ of
the next decade.
8. We are, however, not satisfied
with this growth rate. Our Tenth Five Year Plan 2002-2007 aims
at more than 8 per cent annual GDP growth so that we can double
our per capita GDP in a decade and make a significant dent on
absolute poverty. Our macroeconomic fundamentals are strong with
an inflation rate below 2% and forex reserve is US $55 Billion,
the highest ever held by our Central Bank. That is why the United
Nations Conference on Trade and development (UNCTAD), 2002 praises
India for resisting successfully the global slowdown.
9. Today, ours is probably
one of the most open and liberal investment regimes with conductive
FDI environment among the emerging economies. Within a span of
a decade, our peak tariff have come down from 200 per cent to
35 per cent.
10. That is why,
every year our FDI flow is increasing. Last year (in 2001-02)
FDI registered an impressive increase which is the highest so
far in the history of India - US $4.7 Billion by adopting our
own conservative computation. International Finance Corporation
(IFC), a World Bank arm, has also said that the difference in
FDI as a percentage of GDP between China and India is a mere 0.3
per cent. Internal survey conducted by IFC also reveals that business
environment in India is better than China. We strive hard and
do hope to close the gap and excel China. While our FDI target
is US$ 10 Billion per year some economists feel that our economy
can absorb more than US $20 Billion.
11. A new scheme for setting
up of Special Economic Zones in India was announced in the EXIM
Policy in 2000 to promote exports. The Special Economic Zones
have some unique features. These are a deemed foreign territory
on Indian soil. The highlights of the scheme are given in the
brochure which will be distributed. The recently announced EXIM
Policy and Union Budget for 2002-03 have further added to the
attractiveness of this Scheme by providing a host of fiscal and
other concessions
12. Software and
IT enabled services have emerged as a niche sector for India in
the global context. The software industry was one of the
fastest growing sectors in the last decade with annual growth
exceeding 50 per cent. Software service exports increased from
US $ 4.02 billion in 1999-2000 to US $ 6.3 billion in 2000-01,
registering a growth of 57 per cent. India has become one of the
world leaders in this technology of the 21st century.
13. Excellency, as a result of these
measures, India today offers unparalleled business opportunities
for companies. Large cost effective skilled manpower, vast natural
resources and a diversified manufacturing base are some of the
main strengths of India.
14. Coming to bilateral issues, we
recognise that the trade remains much lower than its potential
and we - the Governments and businessmen together – must find
innovative means of properly augmenting it. The Governments must
provide a legal framework and an environment of certainty and
clarity for business enterprises to identify opportunities and
intensify their cooperation. We already have some key bilateral
agreements in place and must work out many others. We need, above
all, to take innovative measures and promote new means and instruments
like consignment sales, operation through Escrow Accounts and
warehousing to maximise our trade and investment.
15. It is extremely heartening to
note that the Agreement on Quarantine and Plant Protection between
our two countries will be signed during this Session of the Joint
Commission.
16. I welcome your Excellency to
India and wish both the Joint Commission and Joint Business all
success in their work.
Thank you.
