INDIA & THE WORLD BILATERAL AFFAIRS JULY 2014

INDIA & THE WORLD BILATERAL AFFAIRS JULY 2014

• India among biggest UK foreign investors: Report
  (UK Trade and Industry (UKTI) figures, India biggest investor in UK)
  India has retained its position as a leading foreign investor in Britain, according to latest UK Trade and Industry (UKTI) figures released on 20th July. India ranks seventh in the top overseas sources of investment with 74 projects during 2013-14 - a year with the highest number of projects since records began in the 1980s. UKTI said the UK remains the most attractive destination in Europe for foreign business investment, winning almost 1,800 new projects in the past year.
  Trade minister Lord Ian Livingston said it had been an "exceptional year for foreign investment", which had created 66,390 new jobs, the highest number since 2001.
  
• Disaster Rescue System developed
  (Disanet, disaster rescue system)
  A portable communication system that can be installed within an hour in the aftermath of a natural disaster thus greatly aiding rescue operations has been developed by Indo-Japanese researchers. The system, which was showcased on 24th July, was part of the project titled “Information Network for Natural Disaster Mitigation and Recovery” (DISANET). The project is a joint initiative of around 60 researchers from prestigious Indian and Japanese Institutes like IIT Hyderabad, IIT Madras, NGRI, IMD, University of Tokyo, Keio University and others.
  
• India, Nepal to strengthen ties
  (Bilateral relations, India-Nepal, strengthen ties)
  India and Nepal on 26th July agreed to review and update the Treaty of Peace and Friendship 1950, implement the Bilateral Investment Promotion and Protection Agreement (BIPPA) and finalise the text of a Power Trade Agreement at the earliest, a joint statement issued after a marathon meeting between the two sides said.
  The 26-point joint statement was issued after the meeting of the Nepal-India Joint Commission concluded. The Joint Commission — co-chaired by the Foreign Ministers of the two countries — also directed the Nepal-India Boundary Working Group to commence field works at the earliest to look into missing border pillars and boundary disputes.
  Also, a meeting of the India-Nepal Joint Commission, formed in 1987 with the aim of meeting every two years in the two capitals, was held on 26th July after 23 years, a fact stressed by Minister for External Affairs Minister Sushma Swaraj, as demonstration of the new Indian government’s importance towards Nepal.
  In the 10-month period until mid-May this year, Nepal’s trade deficit with India had widened to NRs 337.53 billion (approximately Rs. 210 billion).
  Friendship Treaty
  The 1950 India-Nepal Treaty of Peace and Friendship (official name Treaty of Peace and Friendship between the Government of India and The Government of Nepal) is a bilateral treaty between Nepal and India establishing a close strategic relationship between the two South Asian neighbours.
  The treaty was signed at Kathmandu on 31 July 1950 by then Prime Minister of Nepal Mohan Shamsher Jang Bahadur Rana and Indian ambassador to Nepal, Chadreshwar Narayan Singh and came into force the same day as per Article 9 of the Treaty.
  The treaty allows free movement of people and goods between the two nations and a close relationship and collaboration on matters of defence and foreign affairs. After an abortive attempt in 1952 of the Communist Party of Nepal to seize power with Chinese backing, India and Nepal stepped up military and intelligence cooperation under treaty provisions, and India sent a military mission to Nepal
  The India-Nepal Treaty of Peace and Friendship was signed by Nepali Prime Minister, Mohan Shamsher Jang Bahadur Rana, and the Indian Ambassador to Nepal, Chandreshwor Narayan Singh on 31 July 1950 and came into force the same day. It has ten articles. The treaty provides for everlasting peace and friendship between the two countries and the two governments agree mutually to acknowledge and respect the complete sovereignty, territorial integrity and independence of each other.
  As per Articles 6 and 7, the two governments agree to grant, on a reciprocal basis, to the nationals of one country in the territories of the other, the same privileges in the matter of residence, ownership of property, participation in trade and commerce, movement and other privileges of a similar nature. This enables the Nepali and Indian citizens to move freely across the border without passport or visa, live and work in either country and own property or do trade or business in either country. There is a large number of Nepalis (in millions) living, owning property and working or doing business in India as a beneficial aspect of the treaty for Nepal. Reciprocally, many Indians live, own property and business in Nepal.
  Free movement of persons across the border was the norm even before the 1816 Treaty of Suguali. This became somewhat restricted after 1816. After the 1860 treaty, Prime Minister Jung Bahadur allowed Indians to purchase and sell land in the Tarai and invited businessmen, traders and landlords from India. The British also kept the Nepal-India border open. The Nepal king enacted Citizenship Act of 1952 that allowed Indians to immigrate to Nepal and acquire Nepalese citizenship.
  
• India and Singapore have asked their negotiators working on the Comprehensive Economic Partnership Agreement (CEPA) to show adequate flexibility to move ahead and have the review completed at the earliest. This was agreed to at a meeting that the Singapore’s visiting Foreign and Law MinisterK Shanmugam, had with External Affairs Minister Sushma Swaraj on 1st June.
  
  The two leaders also had “prolonged and detailed” discussions on the possibility of Singaporean companies participating in infrastructure projects based in the Delhi-Mumbai industrial corridor, the Chennai-Mumbai corridor, in the North East and on the Buddhist circuit.
  
• Back Ground
  In 2005, both nations signed the Comprehensive Economic Cooperation Agreement (CECA) and have organised the India-Singapore Parliamentary Forum and the Singapore-India Partnership foundation
  
  FICCI and CII and Singapore’s business federations were also part and parcel of it The CECA…………..
  • Eliminated tariff barriers, double taxation, duplicate processes and regulations and provided unhindered access and collaboration between the financial institutions of Singapore and India.
  • Enhanced bilateral collaboration related to education, science and technology, intellectual property, aviation and relaxed visa regulations for Indian professionals in information technology, medicine, engineering and financial fields to emigrate and work in Singapore.
  • Singapore has invested in projects to upgrade India's ports, airports and developing information technology parks and a Special Economic Zone (SEZ).
  • India has become Singapore's 4th biggest tourist destination and more than 650,000 Indians visited Singapore in 2006.