New Delhi: The Cabinet Committee on Economic Affairs Thursday approved the Cruise Shipping Policy of India that envisages a zero-tax regime for cruise ship operators.
Under the policy, cruise operators will be exempted from income-tax, excise duty, customs duty, corporate tax and service tax that accounts for almost a third of their total revenues.
A mini-township on the high seas, cruise shipping is one of the most dynamic and fastest growing components of the leisure industry worldwide, fast emerging as a new marketable commodity.
Growing globally at the rate of 12 per cent annually, this sector has witnessed some activity in India as well of late. However, it is still in its infancy in the country.
The cruise ship industry annually generates $14 billion worldwide and enjoys a passenger base of over 10 million, which is expected to almost double by 2009.
India's share is only 2 per cent, despite its vast coastline of over 7,000 km.
“Cruise shipping would be a path-breaking development in India's effort to carve a prominent space in world tourism, showcasing India as a major source and destination of world tourism,” Minister of State in the Prime Minister's Office Prithviraj Chavan told reporters after the CCEA meeting.
Source: Sify Walletwatch.
Friday, June 27, 2008
Monday, June 23, 2008
Vietnam suspends gold imports on trade gap-WGC
SINGAPORE, June 23 (Reuters) - Vietnam, one of Asia's main gold consumers, has suspended issuing gold import quota for local banks and trading houses in June due to a widening trade gap, a World Gold Council official said on Monday.
"The government is very concerned. They have to reduce trade balance deficit. Gold is one of the main imports," said Hyunh Trung Khanh, a consultant for the Vietnam chapter of World Gold Council.
"So far, Vietnam has imported 60 tonnes of gold, with the value of $1.8 billion (Jan-May). They have to temporarily suspend imports. The central bank has temporarily suspended gold imports until further notice. All the imports quotas are suspended."
Traditionally, Vietnamese only use gold for jewellery and real estate transactions but when inflation is high many choose gold or the U.S. dollar to hedge against inflation.
Vietnam's annual inflation rate hit 25.2 percent in May, while the trade deficit has tripled this year.
Vietnam imported around 30 tonnes of gold in January-May in 2007, according to the WGC figures. (Reporting by Lewa Pardomuan; Editing by Lincoln Feast)
Source: Reuters India
"The government is very concerned. They have to reduce trade balance deficit. Gold is one of the main imports," said Hyunh Trung Khanh, a consultant for the Vietnam chapter of World Gold Council.
"So far, Vietnam has imported 60 tonnes of gold, with the value of $1.8 billion (Jan-May). They have to temporarily suspend imports. The central bank has temporarily suspended gold imports until further notice. All the imports quotas are suspended."
Traditionally, Vietnamese only use gold for jewellery and real estate transactions but when inflation is high many choose gold or the U.S. dollar to hedge against inflation.
Vietnam's annual inflation rate hit 25.2 percent in May, while the trade deficit has tripled this year.
Vietnam imported around 30 tonnes of gold in January-May in 2007, according to the WGC figures. (Reporting by Lewa Pardomuan; Editing by Lincoln Feast)
Source: Reuters India
Friday, June 13, 2008
More perks for gems and jewellery business
Gujarat prevails over almost 80 per cent of the diamond polishing business and its contribution to gems and jewellery is also increasing with time. In the new industrial policy, the Government is all set to spring a surprise package for the industry to increase its share of business in the state.
The government would give special assistance to set up Hallmark Certification Centres so that jewellery produced in the state would be recognised at global level.
As the Rs 90,000 crore diamond cutting and polishing business, gold, silver and precious stone business have the potential to get into bigger markets, the government has set up a gems and jewellery park near Surat, the diamond hub. Besides, the task force looking into the new industrial policy has recommended some incentives for setting up a gems and jewellery park.
The task force has recommended that for setting up a gems & jewellery park, with a minimum of 50 units including service unit, a financial support at 50 per cent of fixed capital investment in land, building and infrastructure facilities upto maximum of Rs. 2.5 crore per park should be given.
Hallmarked jewellery produced in these parks is expected to be promoted globally. The task force has recommended establishment of Hallmark certification centres. The task force has recommended financial support to the extent of 50 per cent on the cost of equipments, limited to Rs. 35 lakh.
The task force has also asked to set up Hallmark certification centres and consumer awareness programmes in all districts of the state and reference will be given to the districts where no Hallmarking Centres exist, said sources associated with the task force.
The sources added, "Criteria for Hallmarking centre will be as per Bureau of Indian Standards (BIS)/ International Norms. The recommendation has been made to the industries department that financial assistance should be extended for buying costly equipments for such a facility. The good news is that BSI has recently received international recognition."
According to sources, the task force has also demanded a common testing facility for diamond and gems business in line with gems and jewellery business and recommended financial support of 50 per cent of the equipment cost, to a maximum of Rs. 25 lakh subject to accreditation by National Accreditation Agency or fulfillment of criteria of BIS.
The task force has recommended that gems and jewellery and diamond units should be encouraged to participate in trade fairs. The task force has recommended assistance at 50 per cent rent subject to a maximum of Rs 2 lakh each for domestic participation and Rs 5 lakh for International participation in trade fairs to a group of entrepreneurs, where the minimum number is 10.
Source: Business Standard.
The government would give special assistance to set up Hallmark Certification Centres so that jewellery produced in the state would be recognised at global level.
As the Rs 90,000 crore diamond cutting and polishing business, gold, silver and precious stone business have the potential to get into bigger markets, the government has set up a gems and jewellery park near Surat, the diamond hub. Besides, the task force looking into the new industrial policy has recommended some incentives for setting up a gems and jewellery park.
The task force has recommended that for setting up a gems & jewellery park, with a minimum of 50 units including service unit, a financial support at 50 per cent of fixed capital investment in land, building and infrastructure facilities upto maximum of Rs. 2.5 crore per park should be given.
Hallmarked jewellery produced in these parks is expected to be promoted globally. The task force has recommended establishment of Hallmark certification centres. The task force has recommended financial support to the extent of 50 per cent on the cost of equipments, limited to Rs. 35 lakh.
The task force has also asked to set up Hallmark certification centres and consumer awareness programmes in all districts of the state and reference will be given to the districts where no Hallmarking Centres exist, said sources associated with the task force.
The sources added, "Criteria for Hallmarking centre will be as per Bureau of Indian Standards (BIS)/ International Norms. The recommendation has been made to the industries department that financial assistance should be extended for buying costly equipments for such a facility. The good news is that BSI has recently received international recognition."
According to sources, the task force has also demanded a common testing facility for diamond and gems business in line with gems and jewellery business and recommended financial support of 50 per cent of the equipment cost, to a maximum of Rs. 25 lakh subject to accreditation by National Accreditation Agency or fulfillment of criteria of BIS.
The task force has recommended that gems and jewellery and diamond units should be encouraged to participate in trade fairs. The task force has recommended assistance at 50 per cent rent subject to a maximum of Rs 2 lakh each for domestic participation and Rs 5 lakh for International participation in trade fairs to a group of entrepreneurs, where the minimum number is 10.
Source: Business Standard.
Monday, June 9, 2008
Gems, jewellery export may double by 2015
NEW DELHI, June 8: A multi-pronged approach is needed to position exports of gems and jewellery sector on to a higher growth trajectory, which could double in the next seven years, provided the industry takes some innovative steps, the industry chamber Ficci has said.
“A multi-pronged approach like transformation of the sector from family-owned to a professionally-managed business, innovation in design, focus on new markets and use of advanced technologies will push the gems and jewellery export to $37 billion by 2015,” the chamber said in a study.
This four-fold strategy, says the Ficci study, will push exports from the current $18 billion to $21 billion by 2010 and to $37 billion by 2015. Ficci also foresees an integration of jewellery, luxury and fashion as the next step in this ever-growing sector.
In 2006-07, exports from the industry stood at $17.1 billion, against $16.64 billion in 2005-06, registering a growth of 2.6 per cent.
The chamber also suggested that direct supply of rough diamonds from Angola, Canada and other diamond mining countries would be facilitated and most of the unorganised stone cutting units should be changed to organised ones.
“Certification of jewellery should be made mandatory and all exporters should be allowed to import gold freely,” it said. n SNS
Source: The Statesman.
“A multi-pronged approach like transformation of the sector from family-owned to a professionally-managed business, innovation in design, focus on new markets and use of advanced technologies will push the gems and jewellery export to $37 billion by 2015,” the chamber said in a study.
This four-fold strategy, says the Ficci study, will push exports from the current $18 billion to $21 billion by 2010 and to $37 billion by 2015. Ficci also foresees an integration of jewellery, luxury and fashion as the next step in this ever-growing sector.
In 2006-07, exports from the industry stood at $17.1 billion, against $16.64 billion in 2005-06, registering a growth of 2.6 per cent.
The chamber also suggested that direct supply of rough diamonds from Angola, Canada and other diamond mining countries would be facilitated and most of the unorganised stone cutting units should be changed to organised ones.
“Certification of jewellery should be made mandatory and all exporters should be allowed to import gold freely,” it said. n SNS
Source: The Statesman.
Wednesday, June 4, 2008
India's Export Growth in April
By Kartik Goyal
June 2 (Bloomberg) -- India's export growth accelerated in April as companies shipped more gems, jewelry, oil and other manufactured products to overseas markets.
Shipments jumped 31.5 percent to $14.4 billion from a year earlier, faster than March's 26.6 percent gain, the government said in a statement in New Delhi today. Imports in April rose 36.6 percent to $24.3 billion, widening the trade deficit to an all-time high of $9.87 billion.
Overseas sales have risen as companies boost shipments to Europe, Japan and other developing Asian nations to counter slowing demand from the U.S., India's biggest export market. Increased sales abroad may help sustain growth in Asia's third- largest economy as inflation at a 3 1/2-year high crimps domestic spending.
Indian exports ``are being buttressed by strong demand from emerging markets and oil-producing countries, helping offset slackening demand from OECD countries,'' said Sonal Varma, a Mumbai-based economist at Lehman Brothers Inc. ``A weaker currency also bodes well for India's low-cost, labor-intensive exports, notably textiles and leather.''
Exports to the U.S. rose 9.3 percent in the nine months to Dec. 31, slower than the 10.6 percent gain in the same period a year earlier, according to the latest breakdown of overseas sales released by the central bank. India gives a more detailed analysis of exports five months after releasing initial data.
Shipments to Europe rose 25.5 percent in the nine-month period, from 16.2 percent in the year earlier, the central bank said. Exports to Germany gained 29.3 percent and sales to the Netherlands jumped 91 percent.
Weaker Currency
``I am confident that we will be able to sustain the growth process and overcome the challenges we face on account of the global slowdown,'' Prime Minister Manmohan Singh said today, addressing a grouping of industries in New Delhi today.
A weaker rupee is good for Indian exporters, Trade Minister Kamal Nath said last week. The rupee has declined 7.16 percent this year, making it the second-worst performer among Asia's 10 most-traded currencies excluding the yen.
``The deterioration in the external position has been an important reason why the rupee has softened a bit more than the currencies of several of its Asian partners over recent months,'' said Robert Prior-Wandesforde, a senior economist at HSBC Holdings Plc in Singapore.
Trade Deficit
The trade deficit may widen to 9 percent of the gross domestic product in the fiscal year to March 2009 and the current account deficit to 2.8 percent, Prior-Wandesforde said.
To help boost overseas sales, the government plans to focus on promoting exports to 10 countries including Mongolia, Bosnia- Herzegovina, Albania, Macedonia, Croatia, Honduras, Djibouti, Sudan, Ghana and Colombia, Nath said on April 11.
Nath has set a target of more than tripling India's share of world trade to 5 percent by the year 2020 from the current 1.5 percent.
India's oil imports in April rose 46.2 percent to $8.03 billion as Indian refiners paid more for import of crude oil imports. India relies on imports of overseas crude oil to meet its three-quarters of its energy needs. Non-oil imports gained 32.3 percent to $16.2 billion.
``The unrelenting rise in crude oil prices threatens to disrupt the development process in a large number of oil importing developing countries,'' Singh said today.
Source: Bloomberg.com
June 2 (Bloomberg) -- India's export growth accelerated in April as companies shipped more gems, jewelry, oil and other manufactured products to overseas markets.
Shipments jumped 31.5 percent to $14.4 billion from a year earlier, faster than March's 26.6 percent gain, the government said in a statement in New Delhi today. Imports in April rose 36.6 percent to $24.3 billion, widening the trade deficit to an all-time high of $9.87 billion.
Overseas sales have risen as companies boost shipments to Europe, Japan and other developing Asian nations to counter slowing demand from the U.S., India's biggest export market. Increased sales abroad may help sustain growth in Asia's third- largest economy as inflation at a 3 1/2-year high crimps domestic spending.
Indian exports ``are being buttressed by strong demand from emerging markets and oil-producing countries, helping offset slackening demand from OECD countries,'' said Sonal Varma, a Mumbai-based economist at Lehman Brothers Inc. ``A weaker currency also bodes well for India's low-cost, labor-intensive exports, notably textiles and leather.''
Exports to the U.S. rose 9.3 percent in the nine months to Dec. 31, slower than the 10.6 percent gain in the same period a year earlier, according to the latest breakdown of overseas sales released by the central bank. India gives a more detailed analysis of exports five months after releasing initial data.
Shipments to Europe rose 25.5 percent in the nine-month period, from 16.2 percent in the year earlier, the central bank said. Exports to Germany gained 29.3 percent and sales to the Netherlands jumped 91 percent.
Weaker Currency
``I am confident that we will be able to sustain the growth process and overcome the challenges we face on account of the global slowdown,'' Prime Minister Manmohan Singh said today, addressing a grouping of industries in New Delhi today.
A weaker rupee is good for Indian exporters, Trade Minister Kamal Nath said last week. The rupee has declined 7.16 percent this year, making it the second-worst performer among Asia's 10 most-traded currencies excluding the yen.
``The deterioration in the external position has been an important reason why the rupee has softened a bit more than the currencies of several of its Asian partners over recent months,'' said Robert Prior-Wandesforde, a senior economist at HSBC Holdings Plc in Singapore.
Trade Deficit
The trade deficit may widen to 9 percent of the gross domestic product in the fiscal year to March 2009 and the current account deficit to 2.8 percent, Prior-Wandesforde said.
To help boost overseas sales, the government plans to focus on promoting exports to 10 countries including Mongolia, Bosnia- Herzegovina, Albania, Macedonia, Croatia, Honduras, Djibouti, Sudan, Ghana and Colombia, Nath said on April 11.
Nath has set a target of more than tripling India's share of world trade to 5 percent by the year 2020 from the current 1.5 percent.
India's oil imports in April rose 46.2 percent to $8.03 billion as Indian refiners paid more for import of crude oil imports. India relies on imports of overseas crude oil to meet its three-quarters of its energy needs. Non-oil imports gained 32.3 percent to $16.2 billion.
``The unrelenting rise in crude oil prices threatens to disrupt the development process in a large number of oil importing developing countries,'' Singh said today.
Source: Bloomberg.com
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