Ministerial Meeting of Asia- Pacific LDCs on Graduation and Post-2015 Development Agenda. Session 6 18 December 2014, Kathmandu, Nepal

Transcription

1 Ministerial Meeting of Asia- Pacific LDCs on Graduation and Post-2015 Development Agenda. Session 6 18 December 2014, Kathmandu, Nepal Ankur Mahanta Trade Policy Consultant, Confederation of Indian Industry

2 Outline India s Trade and Investment with Asian LDCs India s DFTP and South-South Development initiatives Trade, Investment and Development Assistance under S-S Cooperation Industry initiatives and Development Cooperation

3 Imports India's Trade with select Asian LDCs, in USD mn Exports India s trade with Asian LDCs India has a huge trade surplus with most Asian LDCs, except Myanmar and Lao PDR Imports are mainly in crude oil and gas (with Yemen and Myanmar), timber (Myanmar) and fruits and vegetables Exports: cotton goods, POL, cereals, auto and auto components, iron and steel, machinery and pharmaceutical This is unsustainable due to the structure of trade. However, rudimentary value chains in T&C visible.

4 India s Investments in Asian LDCs Indian investment stock in Nepal is the highest among all LDCs at USD 400 million (appox) with over 560 FDI projects Investments data to other Asian LDCs are sketchy, and possibly underreported. Various sources of financing projects (as well as onward routing through tax havens) Hydropower sector (in Nepal) and the oil and gas sector (in Myanmar) important for Indian investments. Investments in T&C sector in Bangladesh growing Trade and investment linkages will be crucial in the creation of south-south value chains India s OFDI stock in Asian LDCs, until 2012 (in USD million) Nepal 400 Bangladesh 335 Myanmar 223 Bhutan 36 Cambodia 15 Lao PDR 12 Yemen 3 Afghanistan 2 Timor-Leste 2 India s Total OFDI 122 billion

5 India s DFTP and Development Initiatives India has recently amended its Duty Free Tariff Preference (DFTP) scheme to cover around 98% of the tariff lines for imports from the Least-developed Countries (LDCs) for tariff elimination. Studies have suggested that due to existence of NTMs, non-cumulation, and a targeted exclusion list the scheme s effectiveness may be limited India s Grants and Lines of Credit has given focus to LDCs. South Asian LDCs accounted for 81% of India s total Technical and Economic Cooperation fund of USD 855 million. LOCs have become a special development finance mechanism particularly for infrastructure projects. Some prominent LOCs to Asian LDCs include: USD 1 billion to Bangladesh for railways development; USD 155 million to Myanmar for railway projects; USD 350 million to Nepal for road, power generation Need for a consolidated approach

6 Trade, investment and development assistance under S-S Cooperation A Consolidated Approach to India s Development Partnership The Common African Position (CAP) articulates the need for structural economic transformation in the post development agenda. Need for Asian LDCs and development partners to articulate the role and development of the private sector; enhanced participation in global value chains; South-South partnership focused on partner country needs through public-private dialogue UN Global Compact, companies that once enacted their social responsibilities as a philanthropic sideline, and later as a risk management technique, are now bringing sustainability into the heart of their business models. Joint Vision Institution alise PPDs Areas of engagem ent Development Partnership should enhance private sector participation in creating shared value India s development intervention should contribute to realising the post-2015 development agenda Sustained engagement with the Indian private sector as solutions partner, in identifying areas of development intervention Regular PPDs to focus on: What the partner country needs >> What India can offer >> How India can make it happen >> How the partner country can support Strong government to business linkages including revamped development and commercial wings of embassies Mechanism to discuss regulatory and other barriers Revamped funding models to benefit from new development finance architecture, such as the BRICS Bank and Asian Infrastructure Investment Bank; trilateral cooperation; speedy and transparent LOCs/Buyers Credit

7 Industry initiatives and development cooperation CII has worked in the areas of Quality Management Systems, Manufacturing, Sustainability reporting and Energy Auditing. There is immense scope for sharing best practices in the private sector, particularly the SME sector, through development cooperation initiatives. Traditional and emerging donors should explore newer frameworks for engaging with the private sector within the South-South context through the three As of: adaptable, appropriate and affordable Thank You