Net EXPORTER
A power-packed performance
The country’s power sector underlined a turnaround story as India for the first time became a net exporter of electricity during the recently-ended fiscal year. With a total of 5,798 million units exported to Bangladesh, Nepal and Myanmar, India’s electricity export during April 2016-February 2017 surpassed the import of about 5,585 million units from Bhutan, data from Central Electricity Authority, the designated authority for Cross Border Trade of Electricity showed. Ever since the cross-border trade of electricity started in 1980s, India has been a net importer sourcing 5,000-5,500 million units from Bhutan, much higher than the electricity supplied to Nepal. However, exports to Nepal and Bangladesh grew 2.5 and 2.8 times respectively, in last three years. Well, a few more cross-border links are in the pipeline, which could further boost electricity exports.
MEIS extension
Yet another lease of life
Bringing tears of joy for onion growers, the government extended benefit under Merchandise Exports from India Scheme (MEIS) for onion exports for the second time. The three-month extension (till June 30, 2017) – of 5% reward under MEIS – has been welcomed by both farmers and exporters of onions. The second extension is expected to arrest the sharp decline in onion prices and encourage outbound shipments. For the uninitiated, the government had introduced a 5% reward under MEIS for exports of onions in August 2016. The benefit was valid till December 31, 2016, which was further extended till March 31, 2017. Faced with a steep fall in prices on the expectations of bumper output, onion growers and exporters were demanding that the government extend the MEIS benefit. Interestingly, onion exports tripled in FY2017, following the government’s decision to incentivise onion exports in August last year.
Diesel Export
A gesture of goodwill
With an aim to boost energy trade with its eastern neighbour, India formally commenced the commercial supply of high-speed diesel (HSD) to Bangladesh. Prime Minister Narendra Modi and his Bangladeshi counterpart Sheikh Hasina flagged off a goodwill rail rake consignment of 2,200 metric tonne of HSD from Siliguri Marketing Terminal of Numaligarh Refinery Ltd. to Parbatipur storage depot of Bangladesh Petroleum Corporation. It must be noted that the consignment is being seen as India’s symbolic gesture of friendship to strengthen ties with its neighbour. India will also build pipelines to carry diesel and natural gas to Bangladesh, to give a long life to their strong relationship. Until then, HSD will be moved through rail route. As part of the Framework of Understanding on cooperation in hydrocarbon sector with Bangladesh, a 131-km pipeline will be laid from Siliguri in West Bengal to Parbatipur in northern Bangladesh to transport HSD.
Locomotive exports
On the right track
Having bagged its largest export order, Indian Railways will be supplying train sets and locomotives to Sri Lanka Railways. Rail India Technical and Economic Service (RITES), the engineering and consultancy arm of Indian Railways, has secured an order worth Rs.680 crore for exporting six diesel multiple units (DMU) train sets and 10 broad gauge diesel locomotives to the island nation over a period of two years. Equipped with state-of-the-art technology, the train sets and locomotives will be manufactured in Varanasi and Chennai. RITES’ connection with Sri Lanka isn’t new. It had earlier shipped 20 DMU train sets and three locomotives to Sri Lanka and had also provided expertise for setting up railway maintenance facilities. In addition, RITES has been actively pursuing exports of passenger coaches to Bangladesh Railways from its Kapurthala factory.
Import Alert
Small mercies, big boost
There was some respite in store for the Hyderabad-based drug maker Divi’s Laboratories after US Food & Drug Administration (USFDA), in early April, exempted some more products manufactured at its Vishakhapatnam plant from the alert list issued under clauses 66-40 and 99-32 of the FDA regulations in March. The company manufactures active pharmaceuticals ingredients (APIs), intermediates for generics and advanced intermediates for discovery compounds for pharma giants. Issuing the import alert, the US health regulator on March 20 had banned the company’s production unit-II at Vishakhapatnam, citing violation of manufacturing norms and data integrity issues. USFDA had however exempted 10 products manufactured at the facility from the import alert list. According to the USFDA website, an import alert under clauses 66-40 entails “detention without physical examination” of drugs from facilities which have not met good manufacturing practices (GMPs), and an alert under 99-32 is issued to “firms refusing FDA foreign establishment inspection”. Following the US action, several analysts had downgraded Divi’s stocks to ‘sell’, causing the stock to tank to a 52 week low. However, the latest exemption has provided some relief to the drug manufacturer. The stock market also reacted favourably to the exemption.
Global exhibition on services
Expanding horizons
That India is a giant in services sector does not need to be retold. To keep the momentum going and expand its services basket CII and SEPC jointly mounted the Global Exhibition on Services (GES) at India Expo Centre & Mart in Greater Noida, from April 17 to 20, 2017. Inaugurating the exhibition and emphasising on opportunities that services can provide, President Pranab Mukherjee said, “A country which can place 104 satellites in space from a single launch vehicle, provide successful medical surgeries at a fraction of the cost in advanced nations, win global awards for creativity in advertising, and emerge as the largest film producer in the world, has the potential to offer immense value to international services consumers across a spectrum of areas.” In line with his speech, this year focus sectors in the exhibition included logistics, healthcare, foreign trade, hospitality, education. etc. Over the years, GES has emerged as a global platform for increasing trade in services, enhancing strategic cooperation and strengthening multilateral relationships amongst services industry stakeholders.
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