he government is considering steps to ensure that Special Economic Zones, SEZs, remain attractive destinations for investments. Commerce and Industry minister Anand Sharma said this while inaugurating India International Jewellery Show in Mumbai today. He admitted that SEZs had seen a gradual slowdown though they account for more than a quarter of country's exports.

The commerce minister said he had written to the finance minister to reconsider withdrawing the Minimum Alternate Tax and the Dividend Distribution Tax. He said the government is working closely with the industry leaders to formulate slew of measures to offer a fillip to the special economic zone exports.

An official release said, Mr. Sharma pointed out that the government is encouraging global partnerships and collaborative ventures to adopt a diversified approach in the jewellery sector. He said, New Delhi is setting up an India-Africa Diamond Institute in Botswana, with Indian assistance of 2.7 million US Dollars.

AIR correspondent reports, the 29th edition of the India International Jewellery show has attracted over 800 exhibitors with 1,800 stalls. More than 30,000 business associates are expected to visit the five-day event.

 A Parliamentary Panel has suggested to the Department of Commerce to consider declaring tea as the national drink and accord due prominence in promoting it to boost earnings from its export. The Panel headed by Shanta Kumar said in its report after interacting with stakeholders in tea and coffee growing areas that the plantation crops, tea and coffee should be raised in new areas as these provide gainful employment to a large number of people in remote areas besides being the source of revenue and foreign exchange.

 Apparel exports stood at $11.4 billion in 2010-11 and $13.6 billion in 2011-12. But neighbouring countries such as Bangladesh and Vietnam are having better growth in this sector.

To provide a boost to apparel exports, the Government is planning to expand the market for Indian apparel to Japan, the European Union and the USA. The Government has announced interest subsidy of

Rs 15,880 crore for the sector in the 12th Plan period. About 140 Apparel Training and Design Centres are being set up all over the country to train manpower. 


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India has stressed the need for free movement of labour across borders. Addressing the Global Investment Conference in London, Commerce and Industry Minister Mr Anand Sharma said if the trade paradigm is viewed from a perspective of generating sustainable employment, it is imperative to address the issue of free movement of labour across borders. Mr Sharma wondered as to why in today's globalised world, where capital and technology move with unprecedented speed and volumes across national boundaries, labour cannot move.

Stating that India has engaged with all dynamic and emerging parts of the world in a spirit of true partnerships, Mr Sharma said that New Delhi is in an advanced stage of concluding an ambitious Broad based Trade and Investment agreement with the European Union.

He said India, in the last three years, has also signed Trade in Goods Agreement with ASEAN and Comprehensive Economic Partnership Agreements with South Korea, Japan and Malaysia

Mr Sharma said that trade during the 21st century is vastly different from that during the last century. He said it is so because the 21st century trade is based on a strong trade and investment linkage which is anchored in international investment in production facilities and trade in intermediate goods.

The minister said at present intermediate goods account for more than half of developed country imports and nearly three quarters of imports of large developing economies.

Union Minister for Commerce, Industry and Textiles, Anand Sharma left for London on Wednesday to attend the Global Investment Conference. Mr. Sharma will speak during a session on the Global Trade Partnerships along with the British Minister of Business, Innovation and Skills, Dr. Vince Cable and Dr. Olusegun Aganga, Nigerian Minister of Trade and Investment. During the conference, Mr. Sharma is likely to touch upon the global economic architecture and challenges being faced by the world trade. He may also highlight the new partnerships that India has formed during the recent time in new markets.

In the bilateral meetings with British Ministers, he will discuss the issues of mutual interest and review the growth of economic ties between India and the United Kingdom. The bilateral trade between India and UK in 2011, stood at over 16 billion US Dollars which was around 12 billion US Dollars in the previous year.

The Centre has agreed for a 35000 crore rupee debt restructuring package for the textile sector. Following his meeting with Finance Minister Pranab Mukherjee last evening, the Textiles Minister Anand Sharma announced that the Government has agreed that there is a need to support the Textiles industry in this time of crisis. The Textiles Minister said that the total outstanding debt of textiles sector is Rs. 155,809 crores of which debt of Rs. 35000 crores needs restructuring. He said, Government directions to banks to consider this on priority would be issued in this regard. Textiles Minister Anand Sharma said that there was agreement with the Ministry of Finance that the debt restructuring package would be considered on a case to case basis by Individual Banks.  The Finance ministry would examine in consultation with Reserve Bank of India for a 2 year moratorium on term loans, special provision in NPA norms to avoid asset reclassification and working capital eroded to be converted into working capital term loans repayable over a period of 3-5 years.  An inter-ministerial committee of senior officials would also be constituted to coordinate with Industry-Banks in expeditious restructuring.  The Union Minister of Commerce, Industry and Textiles Shri Anand Sharma had met Finance Minister Shri Pranab Mukherjee, and urged for loan restructuring for the debt stressed textiles industry. Textiles Industry Associations had represented to the textile minister of high stress levels and industry sickness and sought his intervention for a restructuring package. Industry associations had sought a 2 year moratorium on long term loans, special dispensation to be provided by Reserve Bank of India in its NPA rules working capital term loans.

The government has decided to remove curbs on sugar exports, allowing producers to benefit from higher prices in overseas markets. Commerce minister Anand Sharma has said that notification to this effect will be issued in due course. Indian Sugar Mills Associations have said the country is likely to produce 26 million tonnes of sugar, while consumption is expected to be 22 million tonnes. 
The government also removed the minimum export price on onions for the next two months.The government has decided to form a new panel headed by C Rangarajan, chairman of Prime minister's economic advisory council to consider a decision to allow supply of an additional 15 million tonne of foodgrains through the Public Distribution System.The government, on Monday decided to allow exports of cotton. Our correspondent reports, some experts feel that sugar prices should be freed from state control. Presently, states have the power to regulate price of sugar. India is the biggest consumer and second biggest producer of sugar and controls the industry through procurement prices set by both centre and the state governments, to keep its prices stable.

India’s share in world merchandise exports has been continuously increasing since 2007 as per the data compiled by World Trade Organisation. This was informed by Commerce and Industry Minister Anand Sharma in a written reply in the Rajya Sabha today. He said, India’s merchandise exports in 2007 was over 145 billion dollar which increased to 220 billion dollars in 2010. The Minister said that the share has also been increased from one percent to 1.4 percent. Mr. Sharma said that export is a highly competitive endeavour, India has to compete with exports from all around the globe. He said Indian exports face varying challenges from time to time. Some are general and affect all exports, others are unique to a product. The Minister added that exchange rate volatility, economic crisis in the developed world, changes in technology, logistical reasons, domestic inflation and market sentiments are some of the important factors which can affect the competitiveness of a particular product.

The government today decided to allow further cotton exports, in 2011-12 marketing year ending September, as production estimates have been revised upwards. Commerce and Textiles Minister Anand Sharma told reporters in New Delhi after meeting Agriculture Minister Sharad Pawar that a decision has been taken to remove suspension of cotton exports registration and it will be allowed by the government.

Last month, the government had lifted the ban on exports, but decided not to issue fresh registration of certificates. Today's decision comes against the backdrop of Pawar writing to the Prime Minister objecting to the government's export policies towards certain farm items like cotton, sugar
and milk.

Mr. Sharma said there would not be any quantitative restrictions on registration for exports, but the group of ministers (GoM) would review the situation in two-three weeks.