INDIA & THE WORLD BILATERAL AFFAIRS DECEMBER 2013

INDIA & THE WORLD BILATERAL AFFAIRS DECEMBER 2013

• India has signed a Rs. 4,000-crore deal with the US for procuring six more C-130J Super Hercules Special Operations aircraft for the Indian Air Force. The proposal was cleared by the Cabinet Committee on Security (CCS) headed by Prime Minister Manmohan Singh on December 20.The two sides signed the deal on 27 December, under which the US Air Force will supply the aircraft to the IAF through the Foreign Military Sales route, sources said. The IAF already has a fleet of six similar planes which are deployed at the Hindon air base near New Delhi and the force uses it for carrying out special operations including landing on inhospitable air strips in the Ladakh area. The IAF had acquired the first lot of six aircraft at a cost of around Rs. 5,500 crore. The new lot of six planes will be located at Panagarh in West Bengal, which would be headquarters of the proposed Mountain Strike Corps of the army along the China border. The aircraft is capable of airdropping commandos and material in darkness due to its night-vision imaging. It can prove very handy in wartime due to its ability for special air operations and transport of material and supplies. It can be used in mountainous terrain in hostile circumstances. The four-engine plane with Rolls Royce engines has the technology and configuration to perform low-level precision flying.
  
• The first ever Japan-India Maritime Exercise (JIMEX) to be conducted in waters off the Indian coast is scheduled in the Bay of Bengal from 19th December to 22nd December 2013. The Indian Navy will be represented by the indigenously built stealth frigate INS Satpura, the Guided Missile Destroyer INS Ranvijay and missile corvette INS Kuthar. From the Japan Maritime Self Defence Force (JMSDF) two Guided Missile destroyers, JS Ariake (with Commander Escort Division – 7 embarked), and JS Setogiri will participate. The exercise focuses on Maritime Security Cooperation. Spread over four days, the exercise will comprise harbour and sea phases of two days each. During the harbour phase, the ships crews’ will exchange experiences through professional interactions and will undertake planning for joint operations for the sea phase. It may be recalled that India and Japan agreed upon conduct of bilateral naval exercises during Defence Minister AK Antony’s visit to Japan in Nov 2011. The maiden JIMEX was conducted off Japan in Jan 2012. This is the second round of the bilateral JIMEX and the first to be conducted in Indian waters.
  
• India and Republic of Macedonia signed the new Agreement for the avoidance Of Double Taxation and the prevention of Fiscal Evasion (DTAA) with respect to taxes on income. The Agreement was signed in New Delhi on 17 December, by Salman Khurshid, the Minister of External Affairs and Nikola Poposki, the Foreign Minister of Macedonia. Once the DTAA enters into force, it will provide relief to taxpayers from double taxation and thereby, stimulate the flow of capital, technology and personnel between both the countries and will further strengthen the economic relationship between the two countries. The Salient features of this agreement are as under: 
  • The agreement provides relief from double taxation to residents of India earning income in Macedonia and residents of Macedonia earning income in India.
  • The agreement provides that taxation of dividend, interest and royalty in the source country will not exceed 10 %.
  • The agreement provides for taxation of business income in the source country if the taxpayer has a permanent establishment there
  • The agreement provides for taxation of capital gains from securities in the source country.
  • The agreement has a ‘limitation’ of benefit article which provides that the benefit of this agreement will not be available to entity which has formed mainly to obtain benefits under this agreement.
  • The agreement is based on international standard of transparency and exchange of information and provides for exchange of information (including banking information) concerning taxes.
  • The Agreement provides for mutual assistance in collection of taxes due in other country.
  • This agreement is expected to boost economic relationship between India and Macedonia.
    
• Three academic institutes viz- (i). Administrative Staff College of India, Hyderabad; (ii) Indian Institute of Public Administration, New Delhi and (iii) International Management Institute, New Delhi here today separately signed MoU with the International Centre for Promotion of Enterprises (ICPE). The Acting Director General, ICPE, who is visiting India signed the MoU with the Heads of these Institutes in the presence of Praful Patel, Minister of Heavy Industries and Public Enterprises. Secretary, Department of Public Enterprises (DPE), is currently the ex-officio President of ICPE Council. At the initiative of DPE, the academic / research ties between ICPE and some reputed Indian institutes have been strengthened. ICPE was established in Ljubljana, Slovenia, at the initiative of the United Nations in 1974. Nineteen countries including India, Sri Lanka and Bangladesh are currently members of ICPE. One of the main objectives of ICPE is to promote and support enterprises in developing countries to foster their economic development, and in pursuit thereof share and undertake research, education, training, consultancy, documentation and publication of management related information. It is expected that the signing of MoUs will go a long way in promoting professionalism and executive development in Public Enterprises of India and Slovenia, and will also open new avenues of co-operation and collaboration between them. The Heads of all three Institutes present for the signing of MoU with ICPE expressed the desire to have short-term and long-term courses with a part of the academic curriculum / research programmes shared by the Indian Institutes and part of the course be conducted in India. The Institute of Public Enterprises, Hyderabad, already has a Memorandum of Understanding with ICPE.
  
• India and Venezuela on 20th December, signed a Programme on Cultural Exchange, in New Delhi. The programme was signed by the Secretary, Ministry of Culture, Government of India, Ravindra Singh and Minister of State for the Promotion of Cultural Economy, Ministry of People’s Power for Culture, Venezuela Mr Javier Sarabia after delegation level talks between the two countries. Programme on Cultural Exchange shall be valid for three years. Thereafter, it shall be renewed automatically for a term of three years at a time unless either Party gives in writing an advance notice of its intention to terminate. According to the Programme of Cultural Exchange both the countries have decided to: 
  1. Promote the exchange of bilingual publications (traditional and contemporary stories).
  2. Participation of the Republic of India in the Venezuela’s International Book Fair on a reciprocal basis.
  3. Facilitate, in accordance with their domestic legislation, the customs and tax conditions in order to provide assistance to the International Book Fairs in their respective countries.
  4. Encourage the participation of Venezuelan and Indian poets and writers in the literature festivals organized by both countries.
  5. Encourage the participation of the Republic of India in the Venezuela’s World Festival of Poetry.
  6. Make an issue of the magazine ‘’Actualidades” (a CELARG publication) on the Republic of India or on Indian writers.
     
• India and San Marino signed a Tax Information Exchange Agreement (TIEA) at Rome, Italy on 19th December. The Agreement has been signed on behalf of India by Mr.Basant K. Gupta, Ambassador of India to Italy with concurrent accreditation to San Marino and Ms. Daniela Rotondaro, Ambassador of San Marino to Italy on behalf of San Marino.
  
  Salient features of the agreement with San Marino are: 1) The agreement is based on international standard of transparency and exchange of information. 2) The agreement provides for exchange of information that is foreseeable relevant to the administration and enforcement of the domestic tax laws. 3)The agreement has a specific provision that the requested Party shall use its information-gathering measures to obtain the requested information even though that Party may not need such information for its own tax purposes. 4) The agreement provides for exchange of banking and ownership information. 5) The agreement provides for the representatives of the competent authority of the requesting Party to enter the territory of the requested Party to interview individuals and examine records. 6) The Agreement is expected to further strengthen tax cooperation between India and San Marino.
  
• Secretary General of the League of Arab States, Dr. Nabil Elaraby, paid an official visit to India, at the invitation of External Affairs Minister Salman Khurshid, from 16-18 December 2013. During the visit, Elaraby met with Vice President M. Hamid Ansari and External Affairs Minister Salman Khurshid and exchanged views on a wide gamut of bilateral, regional and international issues of mutual interest including Syria and the Middle East Peace Process. The new Memorandum of Cooperation between India and the League of Arab States and the new Executive Programme for the years 2014-15 were signed during the visit. These documents are aimed at imparting fresh momentum to the institutional links by providing for a structured engagement between India and the 22-member Arab States at the senior official and ministerial levels. It also envisages cooperation in diverse areas like trade & investment, energy, small and medium enterprises, culture, capacity building, etc. India and the Arab world share deep historical, cultural and civilization links. The shared belief in anti-colonialism and south-south cooperation together with the staunch commitment to achieve, preserve and enhance international peace and security through dialogue and consultation forms the basic framework of the cooperation.
  
• A Bilateral Investment Promotion and Protection Agreement (BIPPA) between the Government of India and the Government of UAE was formally signed in New Delhi on 12th December. The Agreement was signed by Namo Narain Meena, Minister of State (E&FS), on behalf of Government of India and Mr. Obaid Humaid Al Tayer, Minister of State for Financial Affairs of UAE on behalf of Government of UAE. The text of the Agreement, which seeks to promote and protect investments from either country in the territory of the other country with the ultimate objective of increasing bilateral investment flow, was finalized on October 30-31, 2013 at Abu Dhabi. The Agreement requires each country to encourage and create favourable conditions for investors of the other country to make investment in its territory and to admit investments in accordance with its laws. It is hoped that the Agreement would serve as a catalyst in boosting investment flows between the two countries.
  
• His Imperial Majesty Akihito, Emperor of Japan and Her Imperial Majesty Michiko, Empress of Japan called on the President of India Pranab Mukherjee on 2nd December 2013 at Rashtrapati Bhavan. The President warmly welcomed the Emperor and Empress of Japan to India and conveyed that the people and Government of India feel honored by their visit. He said it was wonderful to have them back in the Rashtrapati Bhavan after 52 years and that memories of their earlier visit as Crown Prince and Crown Princess of Japan in 1960 are still fresh in the minds of the people of India, who hold them in the highest esteem. The President said India deeply values and attaches the highest importance to its close friendship with Japan, which is based on a strong foundation of mutual respect and admiration. Our civilization ties go back over a millennium. Buddhism is a sacred link. India and Japan have had academic and scholarly exchanges since ancient times. Both countries are presently collaborating in the revival of the Nalanda University. The President said the India-Japan partnership is based on the bedrock of shared values of democracy, the rule of law and individual rights. It symbolizes our mutual quest for the progress and prosperity of our people. India and Japan also share a vision of promoting peace and stability, and the two countries stand united in the dream of a new Asia full of promise and opportunities. Both countries relationship today goes beyond the bilateral as we cement together a truly global partnership with converging strategic interests. He said the visit will give an impetus to the efforts of our two countries and peoples to engage, take new initiatives and elevate our relationship to even greater heights.