INDIA & THE WORLD BILATERAL AFFAIRS FEBRUARY 2014

INDIA & THE WORLD BILATERAL AFFAIRS FEBRUARY 2014

• Indo-U.K Secretary level meeting was held between Lov Verma, Secretary, Ministry of Health and Family Welfare and Ms. Una O’ Brien, Permanent Secretary, Department of Health on 24 February in New Delhi. Copies of the MoU regarding cooperation in the field of health sector between India and the UK, which was signed in 2013, were exchanged. The purpose of the bilateral meeting was to further expand the activities under the MoU and the time lines; to indentify more institutional partnerships at national or state levels to further the collaboration in specific areas; to suggest nominations to a Joint Working Group and the governance arrangements to manage the action and implementation plans under the MoU; and discuss other areas/ activities of mutual interest. The MoU comprises development of a joint work programme with a set of defined , time specified, activities over a five year period, with the aim to improve collaboration between India and UK and learn from each other’s experience. The priority for the DFID (UK) - Government of India partnership has been improvement of maternal and child health and reducing the burden of communicable diseases.
  The areas identified for cooperation in the MoU include:
  i. Promoting exchange on healthcare policy in India and the United Kingdom;
  ii. Human resources for health;
  iii. Regulatory issues;
  iv. Health technology development;
  v. Primary healthcare;
  vi. Strengthening of public health infrastructure and capacity;
  vii. Health security, including cooperation on infectious diseases, emerging infections and drug resistance
  viii. Building on comparative strengths of India and the United Kingdom to work together to improve healthcare services and capacity in other developing countries.
  
• India and Saudi Arabia on 25 February signed a memorandum of understanding on- defence cooperation for greater exchange of information and training. The agreement was signed by Saudi Arabia's Minister of State for Foreign Affairs Nizar Bin Obaid Madani and India's Minister of State for Defence Jitendra Singh. Crown Prince Salman's is the highest level political visit from the kingdom after the January 2006 landmark trip by King Abdullah bin Abdulaziz Al Saud as the chief guest at the Republic Day celebrations. The two countries are eager to work together in curbing money laundering and drug trafficking and enhance cooperation in areas ranging from hydrocarbons to security. Saudi Arabia sees India as an attractive investment hub for its business interests in Asia and seeks Indian investments in areas such as consultancy, construction, telecom, information technology and pharmaceuticals. Saudi Arabia is India's fourth largest partner with bilateral trade of over $43 billion in 2012-13. Saudi Arabia is also India's largest crude oil supplier accounting for about one-fifth of total imports in 2012-13. Indians form the largest expatriate community in Saudi Arabia with about 2.88 million Indian nationals working there.
  
• India and Canada on 24 February signed an Audio-Visual Co-Production Agreement which will enable Indian and Canadian film producers to utilize a platform for collaboration on various facets of film making. The agreement is expected to deepen the engagement between the critical sectors of the film industries of both countries there by, providing a new chapter of collaboration. The agreement was signed by the Secretary I&B, Bimal Julka and Mr. Stewart Beck, High Commissioner of Canada to India in New Delhi. The agreement between India and Canada is expected to benefit producers from both the countries in pooling their creative, artistic, technical, financial and marketing resources for the co-production.
  
  It will also lead to exchange of art and culture among the two countries and create goodwill and better understanding among the people of both the countries thereby boosting cultural ties between the two countries. The agreement will also provide an opportunity to create and showcase India’s ‘Soft Power’ and lead to employment generation among artistic, technical and non-technical human resources engaged in the film production including post-production and its marketing.
  
  Earlier, the Government of India has signed similar agreements with the Government of Italian Republic in 2005, Government of United Kingdom of Great Britain and Northern Ireland in 2005, Federal Republic of Germany in 2007, Government of the Federative Republic of Brazil in 2007, Republic of France in 2010, Republic of New Zealand in 2011, Republic of Poland in 2012 and Republic of Spain in 2012.The Co-production agreements signed so far seek to achieve economic, cultural and diplomatic goals.
  
  India’s co production agreements are unique for international producers as the Country offers technically qualified film crew at reasonable rates, a large pool of talented actors and the multitude of shooting locations. The other benefits are that the co production is treated at par as a national film and is eligible for the National Film Awards and the Indian Panorama section of IFFI. Such films also get the opportunity to be released through the Indian distribution network, and hence co production opens up the Indian consumer market to the foreign producer.
  
• The Ministry of Home Affairs, Government of India signed three agreements to further strengthen the bilateral security relations with Israel in New Delhi on 27 February. These agreements are Mutual Legal Assistance Treaty in Criminal Matters; Agreement on Protection of Classified Material and Agreement on Cooperation in Homeland and Public Security
  
• India and Russia on 2 February agreed to a proposal for setting up a Joint Study Group for studying the scope of CECA (Comprehensive Economic Cooperation Agreement) with member-countries of the Customs Union viz Russian Federation, Kazakhstan and Belarus. This was conveyed in a meeting between the Union Minister of Commerce and Industry Anand Sharma and Mr. Dmitry Rogozin, Deputy Prime Minister, Russia, in New Delhi. Keeping in view of the support of the Russian side on the idea of setting up a JSG for CECA between India and the CU, Russian side was requested to steer the process for CECA within the Eurasian Economic Commission. Both sides also reviewed the progress of identified ‘priority projects’. These projects include establishment of joint stock Indo- Russian enterprises for manufacturing light helicopters Ka-226T; establishment of joint stock Indo- Russian enterprises for manufacturing light helicopters Ka-226T; JSC United Aircraft Corporation preparation of participation in tender for Indian program to develop civil aircraft; plant construction for manufacturing butyl rubber with capacity of 100000 tons per year at the production site in Jamnagar.
  
• India and Saudi Arabia on 27 February agreed to work towards deeper economic engagement including through more investments, joint ventures and technology transfers. In a meeting between Union Minister of Commerce and Industry Anand Sharma and Dr. Tawfiq bin Fawzan Al Rabiah, Minister of Commerce and Industry of Saudi Arabia in New Delhi, both the Ministers stressed on the need to transform the buyer-seller relationship, into one of deeper energy partnership with investments in petro-chemical complexes, modernization of refineries, and joint ventures. Both the Ministers pointed out the need to ink a free trade agreement between the Gulf Cooperation Council (GCC) countries and India for boosting trade. The GCC countries - Oman, UAE, Bahrain, Kuwait, Qatar and Saudi Arabia - and India have identified sectors like petroleum and oil, gas and fertilizers and information technology among other to be given focus. The Indian Minister highlighted the need to diversify India’s export to Saudi Arabia mentioned the list of items of potential export for India i.e. pharmaceuticals, automobiles, textiles, sugar and wheat etc. The Saudi side, on the other hand, highlighted the need for logistics and transportation under the services sector on their part. The bilateral trade between India and Saudi Arabia rose from USD 42.048 billion in 2012 to USD 48.172 billion in 2013.
  
• India and Argentina on 19 February, agreed to enhance cooperation in the field of renewable energy. Collaboration in sectors of bio-diesel and possibilities of future commerce and business in bio-fuel were also discussed. Dr. Antonio Bonfatti , Governor of Santa Fe. Rosario Province, Argentina agreed that the two countries should use their full potential to enhance cooperation and bilateral ties. Hon’ble Minister informed the visiting dignitaries about the National Policy on Bio-fuels which was announced in December, 2009 and endeavours to bring about development and utilization of indigenous feedstock for production of biofuels. He highlighted the Indian approach to biofuels which is based solely on non-food feedstock to be raised on degraded or wastelands that are not suited to agriculture, or through use of wastes and residues, thus avoiding a possible conflict of fuel and food security. Dr. Abdullah also informed the visiting delegation that the Ethanol Blended Petrol (EBP) Programme is currently being implemented by the Oil Marketing Companies (OMCs) with the overall aim of achieving on EBP of 5%.
  
• The Minister of New and Renewable Energy, Farooq Abdullah on 11 February gave the green light to intensifying cooperation between India and the Netherlands on renewable energy. The Minister presided over a ceremony where the Dutch Ambassador Alphonsus Stoelinga and the Secretary of the Ministry of New and Renewable Energy, Dr. Satish Balram Agnihotri, signed a Memorandum of Understanding (MoU). Under this agreement, an Indo Dutch Joint Working Group will be set up and the exchange of technical and institutional knowledge on clean energy will be facilitated. Speaking on the occasion, Dr. Abdullah welcomed the decision of both the governments to enhance their cooperation in the Renewable Energy sector and hoped that the signing of the Memorandum would be a just the beginning of a symbiotic and mutually beneficial wave of cooperation in the clean energy sector. The Dutch Ambassador emphasized that both their countries have similar ambitions and face similar challenges in realizing clean energy options in the respective countries. He hoped that the MoU would encourage cooperation not only at the official and governmental levels but also between leading Indian and Dutch private companies and research institutions. A number of private companies including DSM, Thermax India and PwC were also present on the occasion.
  
• The Vice President of India M. Hamid Ansari and the visiting Chinese State Councilor Yang Jiechi launched the India-China Year of Friendly Exchanges on 11 February 2014. The Year 2014 has been designated by the Governments of India and China as the Year of Friendly Exchanges. The Year of Friendly Exchanges will help in forging a closer and stronger relationship between India and China. Earlier on 24 January 2014, the Vice-President of China Li Yuanchao had launched the India-China Year of Friendly Exchanges in Beijing. The broad contours of the India-China cultural cooperation was laid down in the Agreement on Cultural Cooperation signed in May 1988, which provides for an executive Cultural Exchange Programme (CEP) for implementation. The latest CEP signed in October 2013 during the visit of Prime Minister Manmohan Singh to China provides for cooperation in a gamut of cultural fields including exchanges of visits of performing artists, officials, writers, archivists and archaeologists, organizing cultural festivals, film festivals and exchanges in the field of mass media, youth affairs and sports.
  
• India and Poland have agreed to expand co-operation in the restoration and digitization of Film archives. This was agreed in a meeting between Secretary I&B, Bimal Julka and the visiting high level Polish delegation headed by Malgorzata Omilanowska, Secretary of State, in New Delhi on 14 February. Both the countries also agreed to form a Joint Working Group in order to prepare a futuristic road map to enhance co-operation in Films, Animation, Digitization, Student exchange programme and such other areas of mutual benefit. Speaking on the occasion, Mr. Julka briefed the delegation about various initiatives of the Ministry in the Films sector such as setting up of National Film Heritage Mission with digitization of film archives, setting up of the Centre of Excellence on Animation, Gaming and Visual effects and the participation in various film festivals by the Ministry to promote India as a filming destination. Both the countries also agreed to further explore possibilities of signing a co-production agreement in the field of Animation.
  
• On the occasion of the visit of the President of Germany Mr. Joachim Gauck to India, two Umbrella Agreements respectively for financial and technical cooperation under Indo German bilateral Development Cooperation were signed in New Delhi on 5 February. The Umbrella Agreements were signed by P. Chidambaram, Finance Minister of India and Dr. Gerd Mueller, Federal Minister for Economic Cooperation and Development, Germany during the meeting between the two ministers. On this occasion, both sides appreciated the constructive engagement between India and Germany under development cooperation framework. The Government of Germany committed funds amounting to Euro 1.09 billion, which is highest ever commitment so far since 1958. The Umbrella Agreement on Financial Cooperation pertains to concessional loans from Government of Germany for nine projects namely Himalaya Hydropower Programme (HPPCL), Green Energy Corridors, Promotional Programme for Energy Efficient New Residential Housing-II (NHB), Energy Efficiency in Thermal Power Plants (WBPDCL), Affordable Housing Programme (NHB), New Approaches in Microfinance and Microenterprise Finance (SIDBI), Missing Middle Programme (SIDBI), Madhya Pradesh Urban Sanitation and Environment Programme and Himachal Pradesh Forest Ecosystems Climate Proofing Project. The Umbrella Agreement for technical cooperation pertains to thirteen projects in Energy, Environment and Sustainable economic development sectors.
  
• The Government of India and Asian Development Bank (ADB) on 5 February signed an agreement for US $ 200 million for Uttarakhand Emergency Assistance Project. The signatories to the loan agreement were Nilaya Mitash, Joint Secretary (Multilateral Institutions), and Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India; and Ms. M. Teresa Kho, Country Director, INRM, on behalf of ADB. The project will assist the Government of Uttarakhand to meet reconstruction needs due to disaster in Uttarakhand in June, 2013. This project will help State to rehabilitate/ construct the damaged roads, bridges, Urban Infrastructures and will also help by improving disaster Preparedness. It will help economic and social recovery in Uttarakhand in the aftermath of the June 2013 disaster. The Project’s objective is to improve economic and social conditions in Uttarakhand after the 2013 disaster. The loan of US $200 million from ADB’s ordinary capital resources makes up to 97.56% of the total project cost of US $205 million, with the Central And State Government providing counterpart finance of US $5 million.
  
• The Union Ministry of Culture and the Tate on 6 February signed a Memorandum of Understanding (MoU) in New Delhi, expressing a mutual desire to develop collaborations focused on modern and contemporary art. The agreement was signed by Joint Secretary, Ministry of Culture, Shri Pramod Jain and Head of International Partnerships, Tate, Ms. Judith Nesbitt. Under this Agreement, the Ministry of Culture and Tate agree to cooperate on institution to institution collaboration in areas of common interest including exhibitions, scholarly research, fellowships, collection care, learning programmes and loans. Across all areas, there will be a commitment to collaborative exchange between museum colleagues in both India and the UK. With the aim of developing mutual understanding of British and Indian art, this MoU provides a framework for future projects, building on previous collaborations. This agreement is a part of a series of international collaborations undertaken by the Ministry of Culture, which would strengthen the Museum sector in the country and lead to a cross pollination of ideas.
  
• Navratna Defence Public Sector Undertaking Bharat Electronics Limited (BEL) on 7 February signed a Memorandum of Understanding (MoU) with M/s Sagem Défense Sécurité, France, to explore co-operation in the production and supply of Navigational sensors like periscope, Inertial Navigational System and optronic mast to the Indian Navy for its various platforms under consideration for future induction. The MoU was signed at the BEL stall at DefExpo-2014 in New Delhi by Mr P C Jain, Director (Marketing), BEL, and Mr Bruno Even, CEO, Sagem, France. The Indian Navy has ambitious plans of inducting ships and submarines into the service in the near future. Accordingly, the ship and submarine construction programme has been approved by the Government. Naval platforms have large-scale requirement of sensors such as SIGMA–40, Ring Laser Gyro, Optronic mast, Attack Periscope and Radar Mast for submarines. M/s Sagem Défense Sécurité has the technology and expertise in the manufacture of these sensors. BEL is the leader in the manufacture and supply of defense electronics for the Indian Armed Forces. The MoU will facilitate BEL and Sagem to work together for 24 months and if considered necessary, the same can be extended to a further period agreeable to both the companies.