Ahead of Sri Lankan President Mahinda Rajapaksa’s visit to India next month, hundreds of protesters took to the streets against the proposed trade pact, claiming it would hugely benefit the neighbouring country by forcing the domestic industry into appalling risks. The CEPA which was supposed to be signed two years ago is likely to come to fruition during Rajapaksa’s visit to New Delhi on June 8.

Many highly educated, including doctors and engineers who were part of the recent protest along with businessmen fear that the island could be dominated by cheaper and skilled Indian services at the expense of the domestic industry. But this argument is unfounded as India’s educated unemployed were largely jobless because their reluctance to work for less or in remote places. Moreover, Sri Lanka being a country less than half the currency value of India would not have to panic about the products or services from India going cheap rather can ensure superior quality which could help the country build its economy on a firmer footing.

The Indo-Sri Lanka Free Trade Agreement (ISFTA) signed in 1998 and which is effective since March 1, 2000 has been able to boost trade between both nations significantly with near equal opportunity for the Sri Lankans. The ISFTA that is confined to the trading of only goods pushed country’s exports by manifold from $55.7mn in 2000 to $516.4mn in 2007.

On the contrary, in 2002, the traded volume between China and Sri Lanka totalled about $350mn, of which China’s exports accounted for $340mn providing room for Sri Lankan exports at about a meagre $10mn. Although Sino-Lankan trade witnessed tremendous growth over the years with bilateral trade crossing $2bn in 2009, imports from China remained predominately greater than the efflux.

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The report has clarified that though the term “infrastructure” could denote a wide range of facilities and systems including economic and financial infrastructure, social infrastructure and physical infrastructure, the study has centred on physical infrastructure. As per the report, the projections for the future infrastructural development have been drawn from a study by the consulting firm, Booz Allen Hamilton.

In a 2007 report, Booz Allen Hamilton has estimated that investment needed to “modernize obsolescent systems and meet expanding demand” for infrastructure worldwide between 2005 and 2030 was at about US$ 41 trillion. It said the North American (the US and the Canadian) share of the infrastructure needs alone would be around US$ 6.5 trillion through 2030.

While the PIR finds both involvement by public sector as in the case of China and a broad-based public private partnership (PPP) seen in India has country-specific successful models in the speedy development of infrastructural projects. The report highlights the Eleventh Five Year Plan for Energy development by the National Development and Reform Commission of the People’s Republic of China as an example of one such plan which sets specific goals for the development of energy infrastructure in China. The PPP-based National Highway Development Programme of India which aims to deliver about 55,000 kilometres of highways is cited as one good example with a clearly well-defined role for the private sector.

The Positive Infrastructure Initiative was launched in 2009 in response to a clear mandate provided to the Forum at the Annual Meeting 2009 in Davos by the CEOs of the leading infrastructural organizations to ensure that the massive fiscal spending on infrastructure not only generates the employment to restart the global economy but also creates infrastructure assets that foster long-term economic competitiveness, and are environmentally and socially sustainable.

The World Economic Forum (WEF) is an independent international organization committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas. The official website of the WEF in its latest press release has made available details about the report.

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India would be largely interested in absorbing Israel’s technological prowess in areas such as bio-tech, nano-technology, healthcare, security services, water management and agriculture. On the other hand, Israel will focus on the India’s manufacturing potential to overcome its limitations on this front.

Although there are equal trade and utility potential for both countries, the tariff differences remained a roadblock for the smooth transition of trade talks ever since they began. India’s tariffs are on the higher end, and will have to make steep reductions to accommodate Israel’s trading needs. However, given the smaller size of Israel’s manufacturing industry, India does not have to worry about any massive influx of goods if it compromised on tariffs.

Speaking to Business Line, Eli Belotserkovsky, Deputy Chief Mission, Embassy of Israel, said that there are very few issues that need to be sorted out to finalise a FTA between the two nations. He opined that the two-way trade was evenly matched at about $2bn, and projected to grow up to $6bn once the FTA was signed.

Belotserkovsky admitted that they were not good at mass production or heavy equipment, where India could play a big role. He also said that the textile trade was another area which had immense potential between the two nations.

The Indo-Israeli FTA is expected to promote investment opportunities for both governments as well as private enterprises. Among goods and services, both countries’ major area of focus would be agriculture as it has been in the past few years.

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Mary Lascelles Relocation Director at Moving Links 4 You commented “My son recently went to Kashmir, India where he spent three months working on a project. So many folks advised against it as it was an unsafe place, and the newspapers certainly lead us to believe it was nuts for going. He has now returned and he said he never felt unsafe while there. Goes to show that a lot of times fear is instilled by media hype. Still, it’s important to use your intuition – while still living life and not shutting out important experiences.”

Barbara Holtzman, Executive Consultant & Management Coach said she would follow her intuition and did not avoid any place based on an alert alone, and also endorsed Lascelles’ view. While Sally Shiff Social Network Coordinator at Maoz Inc. opined “I live in the Middle East (Israel) and have learned to be aware of safety. What we don’t have here is the theft and harm that I used to see on the streets in the US or as a traveler abroad.” She later added that the places which were unsafe to travel were often found barricaded, and was glad rather to comply with such warnings.

However, some participants in the poll are of the opinion that it would be unwise to overlook these advisories. Similarly, those in the travel and transport industry are also found to be paying attention to the alerts as they feared it would hurt their businesses.

The poll clarification on as to why ask this question read – It is observed that advisories are used these days as foreign policy. Instead of pinpointing the terror strike areas, and helping those countries to nab the perpetrators before the event, most governments just release a terror alert to put that country/ies and administration/s in all kinds of trouble.

The recent terror advisories issued by the US, Britain, Australia and Canada on the Indian capital has forced the government to turn New Delhi into a fortress with heavy deployment of security forces and also increased security checks. Furthermore, some analysts believe operatives under the guise of crank callers could be involved in hoax calls (the recent series of anonymous calls about bombs being planted at various locations in New Delhi) to destabilize day to day business of the city.

It should be recalled that in February the Home Minister of India P Chidambaram had said about a US advisory then “I don’t think it was based on any new information nor do I think that it was intended to send any alarm signal. I think it was a routine advisory and it should be seen as such.”

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The president of the Washington Apple Commission (WAC) Todd Fryhover said Iraq and Iran could be future expansion points for the otherwise stable but highly competitive Middle East market for Washington apples. Likewise, he informed apple exports to China and India from Washington were likely to double as these countries had large populations with increasing purchasing power.

The WAC identifies that direct access to these markets are key to increase sales. Washington shipped 1.9mn boxes of apples into Hong Kong and China in the 2008-09 sales season and that could double if “we had full varietal access,” Fryhover said. Under the prevailing agreements, Washington can export Red and Golden Delicious apples directly into China, but Gala, Granny Smith and any other varieties are not allowed. And these varieties reach China through the grey market route of Hong Kong.

According to the WAC figures, India’s appetite in the last five years increased significantly to 1.75mn boxes of Washington apples in the 2008-09 sales season. Higher buying power and lower quality of domestically sourced apples were the major factors cited as the reasons for tremendous acceptance of Washington apples in India despite very high customs duty.

Fryhover said Iraq already receives some Washington apples through Dubai, re-exporting centre of the UAE and Kuwait, but Iran did not have any such source. Iran being the second largest populated country of the Middle East after Egypt, which has two to three times more buying power than the Egyptians hold potential provided the Washington apples get direct access. Similarly, the changing trends in Iraq also will be explored through its efforts in the Middle East.

Last July, the WAC has tied up with the Arab Marketing Financing International (AMFI) to boost its presence in the Middle East. The AMFI, a Beirut-based company, with promotional representatives in Dubai, Saudi Arabia and Egypt, takes up the responsibility of marketing of the apples through retail displays and consumer awareness about the Washington variety.

Currently, Dubai is the re-exporting portal for Washington apples into Saudi Arabia, Kuwait, Sudan, Qatar, Oman, Yemen and Jordan. And about 1.8mn boxes of Washington apples were sold to Dubai in the 2008-09 sales season.

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Women’s Bill recommends 33.3 percent or one-third of seats in the decision making bodies starting from the Lok Sabha, down to state and local legislatures. The sympathizers of the bill claim that such legislation will increase women’s participation in political affairs of the country by diluting gender inequality in the social system.

Though the draft has passed the first hurdle by getting a nod from the Rajyasabha, upper parliamentary house, underscores women emancipation and empowerment, it is believed to have constructed to serve a larger need of the country, i.e. population control. India’s policy makers envisages such a need as all inclusive growth in the past two decades have facilitated increased life expectancy and reduced infant mortality spiking population growth. They also perceive even 10 percent plus GDP growth would not suffice if the population growth is left untamed.

Nonetheless, there are many misgivings about as to how the bill would address the issues of women such as access to education, healthcare and even food, and above all the decision making rights including child-bearing. It should be noted that the Prime Minister of India Manmohan Singh stated before the bill was put to vote in the upper house “What we are going to enact today is a small token of homage to the sacrifices our women have made in nation building, in the freedom struggle, in all other nation building activities.”

Incidentally, the government seemed to be hoping the benefits of the bill to trickle in over a period of time than in immediate future. The exercise of effecting a policy change is an effort to expedite women empowerment through a governmental process rather than awaiting a social change as many countries with higher women parliamentary participation have experienced. Rwanda ranks first among the list of countries with female representation in the decision making body followed by Nordic states including Sweden and Finland.

The bill has to undergo two more phases for its approval, one at the lower house of the parliament and other at the state assemblies. Reservation within the new bill for minorities and lower castes as demanded by the opposing parties will be discussed once again in the coming sessions.

Prior to the approval, it is hoped, rather than reserving fixed constituencies for women, a rotating system covering all constituencies should be included in the bill for the outreach of all sections of the country. The new legislation to bear the desired results needs to include well chalked out responsibilities to the female representatives for the upliftment of the women of each constituency they represent. Unless these key elements are not looked upon, the fourteen-year old proposal may not be able to fulfil its very goal.

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During the Soviet era, Russia was a gross grain importer and over the last few years the country has grown as the largest grain exporter. Through the new food policy Russia seemed to have set an achievable target as grain exports to other countries are expected to reach 38mn tons by 2015.

Russia during the World Grain Forum in June, 2009 had initiated a food security tie up with the largest wheat consuming states such as India, China and Turkey to build wheat reserve stocks as well as to cushion future price slides, which has been faced by Russian farmers today. Despite the second-best year for exports and increasing demand from livestock farmers, grain prices still remain low on account of high domestic grain inventory.

Viktor Zubkov, the first Deputy Prime Minister of Russia during the Forum had urged foreign investors to develop the 20mn hectares of unused arable land in Russia. The country’s wheat production has crossed 65mn tons, and has set eyes at producing 100mn tons this year despite sinking wheat prices.

In a last week’s report by RIA Novosti, it stated meat production in Russia was also witnessing significant growth over the past few years. Agriculture Minister Elena Skrynnik while she met Medvedev informed domestic meat production grew 14 percent to 3.3mn tons last year, reducing imports by 20 percent.

Similarly, though Russia is short of poultry production, the recent ban on the US poultry is intended to stimulate domestic poultry production. Russia banned imports of the US chlorine-treated poultry as of 1 January on non-compliance to country’s safety standards, a decision likely to hike domestic poultry prices.

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Sharma who was in China to attend the eighth Joint Economic Group dialogue urged the host country to remove tariff and non-tariff barriers on import of Indian rice, fruits and vegetables. He also requested to facilitate landing rights for Indian TV channels in China, and the import of more Indian films.

Sharma informed that New Delhi had doubled its foreign workers visa quota to 40, a decision that likely to help more Chinese firms than any other. However, the number of immigrant workers is still not allowed to exceed more than one percent of the total number of workers employed in any project. While China’s Commerce Minister Chen Demin reciprocated by saying that Indian workers would also get visas on liberal basis.

During the meet, Wen showed keen interest in improving bilateral ties with India and said that only if India and China shared common development platform that they could translate this century into an Asian one. Similarly, Sharma said the time for exclusivity in the international governance structure was over; and both nations would have to be at the front of a new global governance architecture.

After meeting several Chinese leaders, Sharma claimed the meet was very positive and substantive as it covered every component of the bilateral ties. He said that he received assurance from Beijing to encourage the Indian firms in the information technology, pharmaceutical and construction sectors to work with local partners to have ‘more presence and access’ in China.

In 2008–09, China exports to India stood at about $27bn while India’s remained around $11bn. China and India plan to take advantage of its vast consumer base of about 2.5bn people which could be larger than any bloc or region excluded of these two nations.

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