INDIA & THE WORLD BILATERAL AFFAIRS NOVEMBER 2016
- India becomes Associate Member of CERN, Geneva.
India and European Organization for Nuclear Research (CERN) signed an agreement on 21st November making India an Associate Member State of CERN; This follows CERN Council’s adoption of the resolution to this effect on September 15, 2016.
The agreement was signed by Dr. Sekhar Basu, Chairman, Atomic Energy Commission and Secretary, Department of Atomic Energy and CERN Director General Dr. Fabiola Gianotti in Mumbai. India’s Associate Membership will strengthen the long-term partnership between CERN and the Indian scientific community.
Associate Membership will allow India to take part in meetings of the CERN Council and its committees (Finance Committee and Scientific Policy Committee). It will also make Indian scientists eligible for staff appointments. Finally, once the Agreement enters into force, Indian industry will be entitled to bid for CERN contracts, which will open up opportunities for industrial collaboration in areas of advanced technology. - India, China reiterate call to maintain border peace.
The Chief of Army Staff, General Dalbir Singh, who is on a visit to China, and top Chinese military officials have reiterated their call to maintain peace and tranquillity along the India-China border, and to keep up the momentum of high-level military exchanges between the two countries.
General Singh on 21st November called on General Xu Qiliang, Vice-Chairman of the powerful Central Military Commission (CMC). China’s military reforms have also included formation of combat-focused theatre commands, capable of projecting force over longer distances, using integrated assets on land, sea, air and space. - India & Switzerland sign Joint Declaration in Delhi
India and Switzerland on 22nd November signed a Joint Declaration in New Delhi for implementation of Automatic Exchange of Information between two countries in respect of accounts of Indians held abroad. The Joint Declaration was signed by Chairman of Central Board of Direct Taxes Sushil Chandra and Deputy Chief of Mission of Swiss Embassy in India, Gilles Roduit.
The Ministry said, it will make possible for India to receive the financial information of accounts held by Indian residents in Switzerland for 2018 and subsequent years, on an automatic basis from September 2019. It also said that fighting the menace of black money stashed in offshore accounts has been a key priority area for the government. - Indian DGMO holds talks with Pakistan counterpart, warns of strong response
Director General of Military Operations (DGMO) Lieutenant General Ranbir Singh spoke to his Pakistani counterpart on 23rd November and raised the issue of infiltration attempts by terrorists from Pakistan side in Jammu and Kashmir.
A statement issued by the Indian DGMO's office said, he also expressed concern over the unethical act of mutilation of the body of an Indian soldier close to the Line of Control by terrorists infiltrating from Pakistan. He asked Pakistani DGMO to exercise strict control on their troops to refrain from any nefarious activities.
Lieutenant General Singh categorically told his counterpart that if any ceasefire violations were initiated by Pak troops or any infiltration attempt was made by terrorists from Pakistan Occupied Kashmir or territory under its control, it will be responded by the Indian Army appropriately. - India, Bhutan signs agreement on trade for better bilateral relations
India and Bhutan have signed a bilateral trade agreement with a validity period of one year aiming to further strengthen the bilateral relations between both countries.
Under the new agreement, it is aimed to enhance trade between the two countries through trade facilitation by improving procedures, cutting down on documentation and adding additional exit/entry points for Bhutan's trade with other countries.
Commerce and Industry Minister Nirmala Sitharaman and Bhutan's Economic Affairs Minister Tengye Lyonpo Lekey Dorji signed the agreement in New Delhi on 12th November. The first agreement on trade and commerce between both countries was signed in 1972.
Since then, the agreement has been renewed four times. The last agreement was renewed on July 28th, 2006 and was valid till July 29th, 2016. The validity of the agreement was extended for a period of one year or till the date of coming into force of the new Agreement. - India, Myanmar and Thailand Friendship Motor Car Rally flagged-off
Minister of State for Road Transport and Highways Mansukh Lal Mandaviya on 13th November flagged off India, Myanmar and Thailand Friendship Motor Car Rally from India Gate in New Delhi.
The rally is aimed at sensitizing people about the India- Myanmar- Thailand Highway which will connect India with ASEAN region. The 3200 kilometer long trilateral highway which will soon become operational will have all weather road connecting New Delhi and Bangkok. The car rally will cover distance of 5722 kilometers in 19 days. - India, Israel to boost cooperation to combat terrorism, radicalization
India and Israel on 15th November inked two agreements in the field of water resources management and agriculture which were signed following the delegation level talks between Prime Minister Narendra Modi and visiting Israeli President Reuven Rivlin in New Delhi.
India and Israel agreed to further enhance cooperation to deal with the growing threat of terrorism and radicalization.
The two leaders noted the strength of the growing defence partnership and agreed on the need to make it more broad-based in production and manufacturing.
The Prime Minister said, India is grateful to Israel for its clear support to India’s permanent candidature in a reformed UN Security Council. He said the two countries agreed to promote educational exchanges as well as enhancing people to people contacts through greater cultural and tourism linkages. - India, US launch USD 95 mn clean energy projects
The US has announced two financial projects worth 95 million US dollars in India to bring more energy-efficient appliances to rural sector, as part of its efforts to continue the global transition to zero-and-low carbon energy sources. The White House said the US has committed 75 million dollars in Overseas Private Investment Corporation (OPIC) financing for renewable energy projects in India.
It has also announced to launch a 20 million dollar partnership in 3rd week of November 2016, with the philanthropic sector to bring more efficient appliances to Indian villages. Known as US-India Clean Energy Finance program (USICEF), it will address a key financing gap in the Indian distributed solar market by funding early-stage project preparatory work. - India, China joint military exercise begins in Pune
The sixth India China Joint Training Exercise "Hand-in-Hand 2016" started at the parade ground in Aundh Military Camp, Pune on 16th November. The objective of the joint exercise is to acquaint both the Armies with each other's operating procedures. - Termination clause in India-Japan civil nuclear deal binding on both parties: MEA
External Affairs Ministry on 17th November said that the Nuclear Cooperation Agreement, NCA between India and Japan has a specific article devoted to termination and cessation of cooperation in certain circumstances which is not new and is similar to the provision in the US Agreement.
According to the Ministry spokesperson Vikas Swarup, any suggestion that the termination clause in the NCA is not binding on India is factually incorrect and all clauses of the agreement are binding on both parties.
Replying to a query on China denying visa to India's badminton team manager Bamang Tago, Mr Swarup said, this matter has been brought to Ministry's notice. He said government's position on differential treatment of Indian passport holders is clear and well known.
He said India has conveyed it to the Chinese side and expects them to address the issue in the spirit of reciprocity and smooth development of bilateral relations. - India-US resolve 100 tax dispute cases worth Rs 5,000 crore
India and the US have resolved more than 100 tax dispute cases involving Rs 5,000 crore under the bilateral Mutual Agreement Procedure (MAP).
A meeting of the Bilateral Competent Authority MAP or Advance Pricing Agreement (APA) between India and the US was held in Washington in October, 2016 and these long pending cases were resolved.
During the meeting, 66 MAP cases relating to Transfer Pricing issues and 42 MAP cases relating to Treaty Interpretation issues were agreed to be resolved successfully.
MAP, under the Double Taxation Avoidance Agreement (DTAA), is an alternative dispute settlement mechanism available to authorities and foreign investors.
The resolved cases pertain to various issues like transfer pricing adjustments made to the international transactions in the nature of payment of royalty, management fees, cost contribution arrangements, engineering design services, contract R&D services, investment advisory services, Marketing Support Services, Software Development Services.
The treaty interpretative issues were in the nature of presence of permanent establishment in India and profit attribution to such PEs, disputes pertaining to royalty income v/s business income of foreign companies, etc. During the meeting, India and US also reached an agreement on the terms and conditions of the first ever bilateral APA.
Though India started its bilateral APA process with the USA by accepting applications from the Indian taxpayers from FY 2012-13, the USA started its bilateral process with India only in February 2016 by way of accepting applications from US taxpayers
APA, introduced in the Income Tax Act in 2012, is a pact between a taxpayer and the tax department on a transfer pricing procedure for determining the value of assets and ensuing taxes on intra-group overseas transactions. APAs could be a unilateral agreement between the company and Indian tax authorities or a bilateral agreement involving a foreign country. - India, UK sign 3 advance pricing agreements
India and the UK have signed three Bilateral Advance Pricing Agreements (APAs) in order to have a smooth tax regime between the two and reduce litigation arising out of transfer pricing issues.
These Agreements are a result of the understanding reached with the Competent Authority of United Kingdom (UK) some time ago. The Competent Authorities of India and UK had earlier exchanged mutual agreements amongst them under the Mutual Agreement Procedure (MAP) Article of the India-UK Double Taxation Avoidance Convention (DTAC)
These three pacts cover international transactions in the nature of payment of intra-group service charges and pertain to the telecom industry. They also have a roll-back provision.
With this, India and the UK have concluded five bilateral APAs and some more would be concluded in the near future. The total number of bilateral APAs concluded so far by the Central Board of Direct Taxes (CBDT) is seven. The APAs are also meant to address complex transfer pricing issues in a fair and transparent manner.
Rollback of APAs was announced in the Budget in July 2014 to provide certainty on the pricing of international transactions for four prior years (rollback years) preceding the first year from which APA is to be applicable. - India, UK agree to set up Joint Working Group to expand trade
India and the UK on 7th November agreed to set up a Joint Working Group, JWG to expand trade. The Group will not only focus on goods trade, but also services, including through greater mobility for skilled professionals. Indian Prime Minister Narendra Modi and British Prime Minister Theresa May held discussion. According to Theresa May Indian companies are successfully raising finance from London and New Delhi is encouraged by London Stock Exchange hosting several Rupee denominated Masala bonds.
The Prime Minister invited the United Kingdom to build partnership with Indian enterprises that focus on manufacturing, technology transfer and co-development in Defence sector. He also welcomed the growing cooperation in cyber security. Mr Modi thanked his counterpart for UK's consistent support for India's membership of UN Security Council and Nuclear Suppliers Group.
On cross-border terrorism, Mr Modi conveyed India's deep concern and need for international commitment to take strong action against States supporting and sponsoring terrorism.
On radicalization, the two leaders acknowledged that it is not a limited security challenge and need concerted action to tackle it. Mr Modi said that strategic partnership is geared towards meeting 21st century challenges and contributing to global good.
She said, both the countries have agreed to strengthen their cooperation by sharing best practices to tackle use of Internet by violent extremists. They also agreed to negotiate a cyber framework.
Earlier, India and UK signed two agreements in the field of intellectual property rights and the ease of doing business. - India seeks early extradition of Vijay Mallya from UK
India has sought early extradition of industrialist Vijay Mallya from the UK to face probe in the money laundering case. When asked whether Mallya issue figured in the talks, Joint Secretary (Europe) in the External Affairs Ministry Randhir Jaiswal referred to the joint statement issued after the discussions.
The joint statement issued after talks between Prime Minister Narendra Modi and his British counterpart Theresa May in New Delhi, affirmed their strong commitment to enhance cooperation under the Mutual Legal Assistance Treaty. The two leaders agreed that fugitives and criminals should not be allowed to escape the law and expressed their strong commitment to facilitate outstanding extradition requests from both sides.
The officials dealing with extradition matters from both sides were directed to meet at the earliest to develop better understanding of each countries legal processes and requirements, share best practices and identify the causes of delays and expedite pending requests. They agreed that regular interactions between the relevant India-UK authorities would be useful to resolve all outstanding cases expeditiously. - India and Canada to work together on different research and development fields
India and Canada will work together on different research and development fields. Announcing this at a joint press meet in New Delhi, Science and Technology minister Harsh Vardhan said, both the countries are working on agriculture research, industrial research and in bio-technology fields.
Mr Vardhan also informed that both the countries are planning to host a technology summit in 2017. Canadian Minister of Innovation and Science Navdeep Bains was also present on the occasion. - Centre signs $48 million loan agreement with ADB for Assamese power projects
The Central government and Asian Development Bank, ADB signed a 48 million US dollar loan to help Assam state continue its drive to improve access to efficient and reliable power in the national capital.
This is the second tranche loan of the 300 million US dollar multi tranche financing facility for the Assam Power Sector Investment Program that was approved by the ADB Board in July 2014. The project will help Assam to enhance capacity and efficiency of its power distribution system to improve electricity service to end users.
This loan will help strengthen the state’s distribution system, improve energy efficiency and reduce technical and commercial losses.
Sustainable power supply is critical for facilitating growth and creating employment opportunities, this project will help Assam attract investment and tap its economic potential, in addition to reducing power outages. - India, China to set up JWGs on fake notes, sharing terror info
India and China will soon set up two joint working groups to deal with the Fake Indian Currency Notes and a round-the-clock hotline to exchange information related to terror and organised crimes. The issues were discussed threadbare between a Chinese and an Indian delegation in New Delhi.
Both the sides also discussed issues relating to e-Visa, telecom fraud and security matters. Later, a Chinese delegation also met Prime Minister Narendra Modi during which both the sides agreed that terrorism poses the gravest threat to international peace and security.
According to a Home Ministry statement, the Prime Minister said the intensive exchange of high level visits between India and China over the last two years was heartening and such visits contribute to building strategic understanding between the two countries. - India, Japan sign civil nuclear deal
India and Japan on 11th Novembe signed a landmark civil nuclear cooperation deal after talks between Prime Minister Narendra Modi and his counterpart Shinzo Abe, a move that will boost bilateral economic and security ties and facilitate US-based players to set up atomic plants in India.
The two countries had reached a broad agreement for cooperation in civil nuclear energy sector during Abe's visit to India in December 2015, but the deal was yet to be signed as some issues were yet to be worked out.
The deal would allow Japan to export nuclear technology to India, making it the first non-NPT signatory to have such a deal with Tokyo. It would also cement the bilateral economic and security ties as the two countries warm up to counter an assertive China.
There was political resistance in Japan - the only country to suffer atomic bombings during World War II - against a nuclear deal with India, particularly after the disaster at the Fukushima Nuclear Power Plant in 2011.
Japan is a major player in the nuclear energy market and an atomic deal with it will make it easier for US-based nuclear plant makers Westinghouse Electric Corporation and GE Energy Inc to set up atomic plants in India as both these conglomerates have Japanese investments.
Other nations who have signed civil nuclear deal with India include the US, Russia, South Korea, Mangolia, France, Namibia, Argentina, Canada, Kazakhstan and Australia. - Indo-Japan: Building Stronger Partnership
PM Modi on final day of his 3 day Japan Visit witnesses exchange of Various MoU's on cooperation between Gujarat Government and Hyogo Prefecture; Addressing Luncheon gathering in Kobe, PM says Greater participation of industries will be mutually beneficial.
Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe on 12th November witnessed the exchange of MoU of Cooperation between the Gujarat Government and Hyogo Prefecture.
MoUs in the fields of on People to people contact, Bilateral agreement on trade and investment, Building disaster resilient regions Agriculture, food related operations, Intellectual and personal exchanges were signed.
Prime Minister Modi also invited the small and medium enterprises of Hyogo prefecture region in Japan to come and Invest in MSME sector in India. Revitalzing the Small and Medium units in India has been a constant endeavour of Prime Minister Modi and he has been making every effort to this effect.
Prime Minister Narendra Modi also visited the Kawasaki Heavy Industries plant at Hyogo. He had a detailed tour of the facility where the Shinkansen trains of Japan are built.The construction work of Mumbai-Ahmedabad bullet train project will start by the end of 2018 and the line will become fully operational by 2023. The consultancy work of the project will start in December. - PM visits Kawasaki Heavy Industries plant at Hyogo
Indian Prime Minister Narendra Modi visited the Kawasaki Heavy Industries plant at Hyogo. He had a detailed tour of the facility where the Shinkansen trains of Japan are built.
As indicated by the company name, the company mainly produces railroad vehicles. Recently Kawasaki has received orders from customers in foreign countries, including Ireland and the United States.
All products manufactured for the US rail market are sold through Kawasaki Rail Car Inc., another division of Kawasaki Heavy Industries. After visiting Kawasaki plant PM said that India is waiting for this train to come to India. - India, Palestine sign MoU for setting up of Techo Park in Ramallah
India and Palestine have signed a Memorandum of Understanding for setting up of Palestine-India Techo Park in Ramallah. The announcement of the Techno Park was made during President Pranab Mukherjee's visit to Palestine in 2015.
India has announced grant of 12 million dollars for setting up the Park. Palestinian side has made the land available for the project.
Once completed, the Technopark will serve as an IT hub in Palestine with complete IT facilties offering a one-stop solution to all IT-related service requirements. It will also provide state-of-the-art technology, host IT companies and foreign companies benefiting local business, universities and other institutions. The assistance is part of India’s strong commitment to Palestinian cause. The project will help job creation, business and other opportunities for young Palestinians. - India, China hold discussions on NSG issue in Beijing
India and China on 31st October held discussions on Nuclear Suppliers Group, NSG issue in Beijing.
The first such meeting was held in New Delhi on the 13th of in September, 2016. The talks were substantive and constructive. The two countries will continue engagement to discuss India's membership in the elite group. - Indo-Nepal joint military exercise kicks off
Seeking to boost their defence ties, India and Nepal on 31st October commenced their 10th joint military exercise which will be held over two weeks with emphasis on counter terrorism in mountainous terrain. Indo-Nepal Joint Military Exercise Surya Kiran commenced at Army Battle School, Saljhandi in Nepal.
The Surya Kiran series of Exercises are being conducted annually, alternatively in Nepal and India. Notably in the series of military training exercises undertaken by India with various countries, Surya Kiran series with Nepal is the largest in terms of troop’s participation.
Indian Army said in a statement that the aim of this exercise is to conduct battalion level joint training with emphasis on Counter Terrorism in mountainous terrain. Aspects of Disaster Management have also been included in the exercise. Joint Battalion Level Exercise will enhance defence co-operation and relations between the two nations. - President Mukherjee holds talks with Nepalese counterpart
Indian President Pranab Mukherjee held talks with Nepalese President Bidya Devi Bhandari at Shital Niwas in the capital city of Nepal, Kathmandu on 2nd November. He discussed various bilateral, regional and international issues of significance between the two countries.
President Mukherjee arrived for a three day visit in Kathmandu. This is the first visit by an Indian head of the state in 18 years to the neighbouring Himalayan country. The then President KR Narayanan was the last President to visit Nepal in May 1998 and before him, Giani Zail Singh had visited the country in 1986.
Mr. Mukherjee’s visit is seen as a “goodwill friendship visit” on the invitation of Nepal President Bidya Devi Bhandari. A high-level delegation is accompanying the President.
Besides, Mr. Mukherjee’s engagement in Nepal’s capital city Kathmandu, he will also visit Pokhara and Janakpur on 4th of this month in his visit to Himalayan nation.
The visit reflects the priority that Government of India associates for strengthening its age-old unique partnership with Nepal and the shared historical and cultural linkages and wide-ranging people to people contacts. - India, Sweden agree to enhance collaboration in energy sector
India and Sweden have agreed to enhance collaboration in energy sector with special focus on areas such as waste-to-energy, hydropower, smart metering and solar energy.
On an official visit to Sweden, Power, Coal, New & Renewable Energy and Mines Minister Piyush Goyal had a bilateral meeting with the Swedish Minister for Policy Coordination and Energy, Ibrahim Baylan.
The Power Ministry said in a statement that both sides referred to the existing MoU on Renewable Energy Cooperation. It said, the ministerial delegation participated in three round tables on green financing and investment, smart grid and energy solutions, smart cities, electro mobility and waste to energy and energy efficient mining and mine automation and optimisation. - India, UNISDR sign "Statement of Cooperation" on Sendai Framework
India and United Nations Office for Disaster Risk Reduction signed a Statement of Cooperation during the second day of the Asian Ministerial Conference on Disaster Risk Reduction 2016 in New Delhi on 4th November.
The Statement underlined the guiding principles, objectives and areas of cooperation between India and UNISDR towards the effective implementation and monitoring of the Sendai Framework on Disaster Risk Reduction.
India will partner with UNISDR to work towards strengthening the capacity of Asian countries in ensuring risk resilient development. It will also facilitate the sharing of knowledge and experiences, and collaborative efforts towards addressing critical regional challenges.
The cooperation aims to ensure effective implementation and monitoring of the Sendai Framework through Training and capacity building for Asian countries. - India to acquire US-2i amphibious aircrafts
India has revived the stalled project to acquire a dozen Japanese US-2i amphibious aircraft, worth around Rs 10,000 crore, ahead of PM Narendra Modi’s visit to Tokyo on November 11-12 to further cement the bilateral strategic partnership.
The US-2i project, with six of the huge amphibious planes each for the Navy and Coast Guard, is also slated to be taken up by the defence acquisitions council (DAC) meeting to be chaired by defence minister Manohar Parrikar on 4th November.
Powered by four big turbo-props, the US-2i is capable of short take-offs from land as well as water. While basically meant for search and rescue operations, the US-2i can also rapidly transport 30 combat-ready soldiers to "hot zones" in an emergency.
Though the Navy has much more critical operational requirements ranging from submarines to multirole helicopters, the proposed US-2i deal is intended to send a strong signal to an increasingly belligerent China in the Asia-Pacific region.
Both India and Japan are wary of the China's aggressive territorial claims. India has till now ruled out joining the quadrilateral security dialogue proposed by the US, with Japan and Australia being the other members. But Japan since 2014 has become a regular participant of the annual Malabar naval exercise between India and the US, which has riled China.
Negotiations for the US-2i aircraft deal, which will be the first-ever purchase of military equipment from Japan since it ended its five-decade old self-imposed embargo to export military hardware, have been underway since 2013 but were stalled on the high costs involved.
Japan has now agreed to somewhat reduce the price, which was earlier pegged at $1.6 billion or Rs 10,720 crore for the 12 aircraft, to clinch the deal and expand its strategic partnership with India.
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