IndiaâConnects - High Commission of India, Colombo

High Commission of India Colombo 

India—Connects 

The Economic and Business Newsletter Vol. II Issue 2, February, 2011 

Making Headlines ... 

ITEC Day Celebrations 

A reception was hosted by the High Commissioner of India, Mr. Ashok K. Kantha, at Hotel 

Taj Samudra on 2 February, 2011 to celebrate the Indian Technical and Economic 

(ITEC) Day in Colombo. Every year, ―ITEC Day‖ is celebrated to bring together the 

alumni of ITEC programme. Hon. Prof. G. L. Peiris, Minister of External Affairs, Government 

of Sri Lanka, was the Chief Guest. The reception was attended by over 200 ITEC 

alumni from various parts of Sri Lanka who have received training in India in a variety of 

fields over the last few years under this programme. The function was also attended by 

officials from various government departments, chambers of commerce and media. 

In his remarks, High Commissioner said that bilateral cooperation between India and Sri 

Lanka was wide–ranging and growing strongly and that education was a key dimension 

of the partnership. He also referred to the Knowledge Initiative launched during the visit 

of H.E. the President of Sri Lanka last year to India and noted that ITEC is an important 

component of this partnership. 

Speaking on the occasion, Hon. Prof. G. L. Peiris said that the ITEC programme is a 

very useful initiative of the Government of India and an effective instrument of South- 

South cooperation. He added that the wide range of ITEC training programmes has been 

developed with creativity and imagination to fulfill the needs of the developing countries 

and to help develop human potential thorough structured training. 

The Indian Technical and Economic Cooperation (ITEC) programme was launched on 

15th September, 1964 as a bilateral programme of assistance of the Government of India. 

Being essentially bilateral in nature, ITEC is about cooperation and partnership for 

mutual benefit. Over the years, it has established itself as a widely-appreciated flagship 

programme of the Government of India which is demand-driven and response oriented. 

It is focused on addressing the needs of developing countries and has a wide geographical 

coverage. 

The programme has five components: (i) Training ( civilian and defence) in India of nominees 

of ITEC partner countries; (2) Projects and project-related activities such as feasibility 

studies and consultancy services; (iii) Deputation of Indian experts to partner countries 

for training and advice; (iv) Study tours; and (v) Aid for Disaster Relief. 

Under ITEC and its corollary SCAAP (Special Commonwealth Assistance for Africa Programme), 

159 countries in Asia & the Pacific, Africa, Latin America & the Caribbean and 

East & Central Europe are invited to share in the Indian development experience. The 

ITEC & SCAAP programme of cooperation attracts more than 5000 participants every 

year from 159 ITEC/SCAAP partner countries to attend vocational training courses which 

cover a wide and diverse range of subjects. 

Spotlight: Tourism & Hospitality 

Spotlight of the Month: 

ITEC DAY 2010 - held on 

02.02.2011 

In this issue….. 

Making Headlines... 1 

Bilateral Beat 2-5 

Spotlight 6-8 

Indian Budget 11-12 9-12 

Indian Trade Queries 13-14 

Sri Lankan Trade Queries 15 

Indian Trade Fairs & 

Business Events 16-17 

Useful Biz Links 18 

Contact Us….. 

Economic & Commercial Wing 

High Commission of India 

36-38, Galle Face Road 

Colombo-3, Sri Lanka 

Mr. Manish, Counsellor 

Tel: +94-11-2430560 

Fax: +94-11-2399287 

com.colombo@mea.gov.in 

Mr. Amrit Paul, Attache 

Tel: +94-11-2422158 

Fax: +94-11-2446403 

com2.colombo@gmail.com 

Website: www.hcicolombo.org 

As per the Travel and Tourism Competitiveness Report 2009 by the World Economic Forum, India is ranked 11th in the 

Asia Pacific region and 62nd overall, moving up three places on the list of the world's attractive destinations. 

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BILATERAL BEAT 

The programme covers diverse areas, including IT, diplomacy, management, mass communication, finance, rural 

development, railways, remote sensing, parliamentary studies, public administration and management, banking, rural 

development etc. 46 institutes in both public and private sectors, which are leading centers of learning in their 

fields of specialization, offer more than 230 courses, both short term and long term, in the area of relevance and interest 

to developing countries. 

The entire cost for training under the ITEC programme including the return international airfare, tuition fees, accommodation, 

emergency medical treatment, stipend, book allowances and study tour are met by the Ministry of External 

Affairs. Further information about this programme is available at http://itec.nic.in 

Sri Lanka is one of the largest beneficiaries of the training training programme under ITEC and has been allocated 

145 seats for 2010-2011, up from 80 slots in 2007-2008 to 145 in 2010-2011. 

H.E. Shri Ashok K. Kantha, High Commissioner of 

India addressing the gathering 

Chief Guest—Hon‘ble. Prof. G.L. Peiris, Minister of 

External Affairs of Sri Lanka addressing the gathering 

(L-R) Mr. Tillak Collure, Secretary, Ministry of Industry and Commerce, 

H.E. Shri Ashok K. Kantha, High Commissioner for India, 

Hon‘ble. Prof. G.L. Peiris, Minister of External Affairs, Mr. Tissa 

Jayaweera, President, Federation Chamber of Commerce & 

Industry of Sri Lanka (FCCISL) 

ITEC Trainee - Mrs. R.A. Indika Irani, Assistant Director, 

Ministry of Industry & Commerce of Sri Lanka 

Previous Page Back to Cover Page Next Page

Inauguration of Train Service on Upgraded Coastal Railway Track between Galle-Matara 

The High Commissioner of India, Mr. Ashok K. Kantha, participated in the inauguration ceremony of the train service 

on the upgraded coastal railway track between Galle-Matara on 16 February, 2011. The ceremony was attended by 

Hon. Kumar Welgama, Minister of Transport, Hon. Rohana Dissanayake, Deputy Minister of Transport, Mr. Dhammika 

Perera, Secretary, Ministry of Transport, Mr. Mohan Tiwari, MD, IRCON and officials of Sri Lanka Railways and 

IRCON. 

The Galle-Matara project represents phase-I of the overall coastal rail project between Colombo and Matara and is 

part of the Government of India‘s assistance towards reconstruction in the tsunami-affected areas of Sri Lanka under 

a credit line of US $ 167.40 million. The Galle-Matara railway line upgradation project, covering a distance of 42 kilometers, 

has been completed smoothly on schedule. The work on phase-II of the project from Galle to Kalutara has 

already commenced and would be completed early next year. 

Speaking on the occasion, High Commissioner Kantha said that India was committed to working with the Government 

of Sri Lanka towards the consolidation of peace, prosperity and development in Sri Lanka and for the further 

enrichment of our bilateral ties. He said that both countries should continue to work together in the spirit of partnership, 

as our destinies are interlinked. 

The Galle-Matara track has been up-graded by IRCON to world standards and it will be possible to run trains at 

speeds up to 100 kmph, substantially cutting down the travel time. IRCON has leveraged local talent for this project 

and almost 80% of the manpower comprises the local work force. IRCON is also engaged in several other rail projects 

as part of the Government of India‘s rehabilitation and reconstruction partnership in the north of the island. 

These projects include rebuilding tracks on Omanthai-Pallai, Medawachchiya-Madhu and Madhu-Talaimannar sectors 

which will enable transport connectivity in these areas. The Government of India has offered a credit line of US 

$800 million for reconstruction of the railway system in the north. 

SOURTHERN RAILWAY RENOVATION 




Export of goods to Sri Lanka by sea begins 

The much-awaited mechanized sail vessel export trade operations resumed from the Old Port of Tuticorin in the 

February. With a 10-member crew on board the vessel, the MSV Raj TTN 241 is expected to reach Colombo with a 

consignment of 250 tonnes of goods in a span of 24 hours. Since Tuticorin is known for sail vessel, most of the people 

depend on its operation. 

After flagging off, S. Princeton Fernando, President, Coastal Sail Vessel Owners' Association, Tuticorin, said that 

initially the vessel would be operated weekly and based on the volume of business, the service would be increased 

to four trips a week. He thanked the Chairman of Tuticorin Port Trust A. Subbiah for having extended support to this 

mode of operation. Citing the Old Port of Tuticorin as the backbone of the district and also the veritable source of 

generating business, Mr. Princeton said that it had made great strides in developing relationship between the traders 

of India and Sri Lanka. 

Ubaldraj Meckanna, Secretary of the association, said the resumption of this export trade was a boon to the tradesmen 

of various states across India. 

Traders from many parts of Tamil Nadu, Karnataka and Andhra Pradesh would be assured of better prospects from 

this operation. Since it was the cheapest mode of export trade, the ministries concerned should ensure fifty per cent 

of reservation of cargo handling for the sailing vessel in the interest of traders. 

To ensure prompt delivery of goods to the buyers in Colombo, quantities of consignments had been booked on February 

9 on this chartered vessel, initially. 

Plans were also afoot to ship seafood to the Maldives following demands. To compete with container vessels, the 

stakeholders were contemplating on converting the wooden hull into steel on the vessels. Representations to this 

effect would be made to Director General of Shipping. If the conversion was made, export trade would be expanded. 

Large consignments of up to 2,000 tonnes could be shipped to countries like Malaysia. 

Since it was a traditional trade industry in Tuticorin, fuel spending in vessels would be economised. With the gravity 

of wind, these vessels could be transported. The crews were also trained in handling of goods with care to deliver 

them in time, Mr. Meckanna added. More than 6,000 families would benefit directly and indirectly from this operation, 

Beno, the vessel Master, said. 

Sri Lanka’s trade minister offers 

Indian businesses space in industrial zones, land 

* Undertakes to intercede for land for cultivations if partnered with SL companies 

The Minister for Industry and Commerce Rishard Bathiudeen addressing a visiting Indian business delegation at the 

Ministry premises recently said Sri Lanka had crossed the US$ 8 billion export earnings mark last year, and with 

some sharp strategies conceptualized by private-public partnerships 2011 will see Sri Lanka crossing the US$ 9 billion 

mark. He invited the Indian business delegation to be part of this strong growth agenda of Sri Lanka. 

The Indian delegation consisting of Young entrepreneurs under the banner of CII visited Sri Lanka. They represented 

sectors like textile, food and beverages, construction, paper and chemical industries. The Minister invited the 

delegation to forward a set of proposals by the first week of March so that he could personally get involved in allocating 

space in the industrial zones, and even negotiate with other ministries to allocate lands for the cultivation of fruits 

and vegetables in the country as long as their was strong partnership with a Sri Lankan company. 

Bathiudeen also referred to certain barriers in doing business in India, such as the quality checks on Sri Lankan tea. 

Being able to conduct these checks in Chennai itself was a welcome move that further strengthens trade under the 

Indo-Lanka trade agreement, the Minister said. 



The Minister said the apparel Industry continued to perform well even without GSP+ trade concessions to the EU, 

due to the strong leadership shown by the private sector in infusing cutting edge innovation together with sharp cost 

cutting strategies which has enabled the industry to differentiate Sri Lankan merchandise against its main competitors 

such as China and Bangladesh. 

The Minister said the tea industry had crossed the 1.5 billion rupee export earnings mark with the clear ‗Ozone 

Friendly‘ tea proposition, taking the high ground to add further value into the quality tea that Sri Lanka produces 

which commands the highest prices at any auction in the world. 

Kalpitiya resort bids cancelled 

It was reported in the local media that the Cabinet-appointed Procurement Committee for the Kalpitiya Integrated 

Tourism Resort Project (KITRP) has recommended that the Expressions of Interests (EOIs) that were called last 

year to develop this zone should be cancelled. The Procurement Committee comprising secretaries to ministries, 

has not recommended any of the six parties that were short listed by the Technical Evaluation Committee (TEC) examining 

the Kalpitiya bids because ―there were no well-known tourism industry names.‘. 

Those who submitted proposals to put up tourist resorts, golf courses, marinas, etc in this zone which was defined 

as a tourist zone by the Sri Lanka Tourism Authority are Senok Group, Evergreen Hotels, Jetwing Group, Mackwoods 

Travels, Pathfinder, Sapphire Bay Resorts, Abans, Sun Marina, Ambika Windmills, Upali Travels, Makara and 

Integrated Resorts. The source said that there were no bids from any western chains. 

There are 17 islands in the Kalpitiya area, which is a peninsula that separates the Puttalam lagoon from the Indian 

Ocean and is about 150 km away from Colombo. Some work has already begun on tourist resorts on two of them by 

an Indian and a Maldivian firm. Last July the Sri Lanka Tourism Promotion Bureau said that Qubec Lanka Leisure, 

an Indian firm, is to build 200 beach villas worth US$ 16.8 million and Sun Resorts, a Maldivian firm, is to invest 

some US$ 1.2 billion to build 150 water bungalows in two islands. 

The islands have a marine sanctuary with a diversity of habitats ranging from bar reefs, flat coastal plains, saltpans, 

mangroves swamps, salt marshes and vast sand dune beaches. 


Spotlight continues– Tourism & Hospitality 

It is ranked the 14th best tourist destination for its natural resources and 24th for its cultural resources, with many 

World Heritage sites, both natural and cultural, rich fauna, and strong creative industries in the country. India also 

bagged 37th rank for its air transport network. The India travel and tourism industry ranked 5th in the long-term (10- 

year) growth and is expected to be the second largest employer in the world by 2019. 

Contribution to the economy 

Combining unparalleled growth prospects and unlimited business potential, the industry is certainly on the foyer towards 

being a key player in the nation's changing face. Furthermore, banking on the government‘s initiative of upgrading 

and expanding the country‘s infrastructure like airports, national highways etc, the tourism and hospitality 

industry is bound to get a bounce in its growth. 

The hotel and tourism industry‘s contribution to the Indian economy by way of foreign direct investments (FDI) inflows 

were pegged at US$ 2.24 billion from April 2000 to November 2010, according to the Department of Industrial Policy 

and Promotion (DIPP). 

India‘s hotel pipeline is the second largest in the Asia-Pacific region according to Jan Smits, Regional Managing Director, 

InterContinental Hotels Group (IHG) Asia Australasia. He added that the Indian hospitality industry is projected 

to grow at a rate of 8.8 per cent during 2007-16, placing India as the second-fastest growing tourism market in 

the world. Initiatives like massive investment in hotel infrastructure and open-sky policies made by the government 

are all aimed at propelling growth in the hospitality sector. 

Foreign Tourist Arrivals 

Ministry of Tourism compiles monthly estimates of Foreign Tourist Arrivals (FTAs) in India and Foreign Exchange 

Earnings (FEE) from tourism on the basis of data received from major airports. Following are the important highlights, 

as regards these two important indicators of tourism sector for 2010 and December 2010. 

FTAs in India during 2010 were 5.58 million with a growth rate of 9.3 per cent as compared to the FTAs of 5.11 

million during 2009. 

FTAs during the December 2010 was 6,55,000 as compared to FTAs of 6,46,000 in December 2009 and 

5,34,000 in December 2008. 

FEE from tourism during 2010 were US$ 14,193 million as compared to US$ 11.39 billion during 2009 and US$ 

11.74 billion during 2008. The growth rate in FEE in US$ terms during 2010 was 24.6 per cent. 

FEE from tourism during the month of December during 2010 were US$ 1.55 billion. 

 

Government Initiatives/policy 

According to the Consolidated FDI Policy, released by DIPP, Ministry of Commerce and Industry, Government of India, 

the government has allowed 100 per cent foreign investment under the automatic route in the hotel and tourism 

related industry. The terms hotel includes restaurants, beach resorts and other tourism complexes providing accommodation 

and /or catering and food facilities to tourists. 

The term tourism related industry includes: 

 

 

 

 

Travel agencies, tour operating agencies and tourist transport operating agencies 

Units providing facilities for cultural, adventure and wildlife experience to tourists 

Surface, air and water transport facilities for tourists 

Convention/seminar units and organizations 

The Government of India has announced a scheme of granting Tourist Visa on Arrival (T-VoA) for the citizens of 

Finland, Japan, Luxembourg, New Zealand and Singapore. The scheme is valid for citizens of the above mentioned 

countries planning to visit India on single entry strictly for the purpose of tourism and for a short period of upto a 

maximum of 30 days. During 2010, a total number of 6549 Visa on Arrivals (VoA) were issued under VoA Scheme. 



The tourism master plan, the first for Karnataka, envisages initiatives to attract private investment ranging from US$ 2.2 

billion to US$ 4.4 billion in the next three to five years. The plan is prepared based on the Vision 2020 document prepared 

and adopted by the Karnataka State Planning Board. The state government aims to generate 200,000 jobs in the 

tourism sector in the next five years. The master plan is aimed at making Karnataka the number one destination for 

tourism in the country by 2020, according to Mr G Janardhan Reddy, Minister for Tourism and Infrastructure Development 

As per the press release by Press Information Bureau (PIB) dated November 15, 2010, the Union Ministry of Tourism 

has included Medical Tourism under the Marketing Development Assistance (MDA) Scheme. The Ministry of Tourism 

has sanctioned US$ 27,742 as MDA to 10 Medical Tourism Service Providers during current year. 

The Ministry of Tourism has sanctioned 781 projects in 34 States/ Union Territories (UTs) in the country amounting to 

US$ 511.82 million during the last three years up to June 2010, as per a press release dated October 18, 2010. 

The Ministry of Tourism has won a PATA Grand Award and two PATA Gold Awards during the Pacific Asia Travel Association 

(PATA) Travel Mart 2010 in Macau. The PATA Grand Award was given under the Heritage category for the 

Rural Tourism Project at Hodka village in Kutch District of Gujarat. 

Medical Tourism 

As per a market research report ‗Booming Medical Tourism in India‘ by RNCOS, India‘s share in the global medical 

tourism industry will reach around 3 per cent by the end of 2013. Moreover, medical tourism is expected to generate 

revenue worth US$ 3 Billion by 2013, growing at a CAGR of around 26% per cent during 2011–2013. The number of 

medical tourists is anticipated to grow at a CAGR of over 19 per cent during the forecast period to reach 1.3 Million by 

2013. 

Factors such as, low cost, scale and range of treatments provided by India differentiate it from other medical tourism 

destinations. The growth in India‘s medical tourism market will be a boon for several associated industries, including 

hospital industry, medical equipments industry and pharmaceutical industry. 

Domestic medical tourism in the country has also seen growth in the recent years. As per the report ‗Domestic Tourism 

in India, 2008-09‘ released by the National Sample Survey Office (NSSO), trips for ‗health and medical‘ purposes 

formed 7 per cent of overnight trips in the rural population and about 3.5 per cent in the urban population. ‗Health and 

medical‘ purposes accounted for 17 per cent of same-day trips in rural India and 8 per cent in urban India. Expenditure 

on medical trips accounted for 30 per cent of all overnight trip expenditure for rural India and 15 per cent for urban. 

Recently, the Union Ministry of Tourism has included Medical Tourism under the Marketing Development Assistance 

(MDA) Scheme. The Ministry of Tourism has sanctioned US$ 27,400 as MDA to 10 Medical Tourism Service Providers 

during 2010. 

Hospitality 

The current count of hotel rooms is 130,000, and the country is expected to require an additional 50,000 rooms over the 

next two to three years, according to World Travel and Tourism Committee (WTCC) estimates 

 

 

 

US-based hotel chain, Marriott International, plans to expand its network in India to 100 hotels over the next fiveyears, 

stated Arnie Sorenson, Chief Operating Officer, Marriott International. At present, the group operates 11 

properties across the country. 

Roots Corporation, a subsidiary of Indian Hotels Company (IHC), plans to open 60 to 70 budget hotels, known as 

Ginger Hotel, in 23 locations across the country. 

ITC, the Kolkata-based cigarette major, also projected its plan to open 25 new hotels under the Fortune brand over 

the course of next 12-18 months (or by 2011). 



The Road Ahead 

The Indian hospitality sector is certainly the most apt replication of the belief 'Atithi devo bhava'- touch of tenderness, 

a helping hand and a welcoming visage. 

According to the Tourism Satellite Accounting (TSA) research, released by World Travel and Tourism Council 

(WTTC) and its strategic partner Oxford Economics in March 2010: 

 

 

 

The contribution of travel and tourism to Gross Domestic Product (GDP) is expected to increase from 8.6 per 

cent (US$ 117.9 billion) in 2010 to 9.0 per cent (US$ 330.1 billion) by 2020. 

Export earnings from international visitors and tourism goods are expected to increase from US$ 11.1 billion in 

2010 to US$ 33.6 billion in 2020. 

Travel and tourism investment is estimated at US$ 34.7 billion or 7.2 per cent of total investment in 2010. By 

2020, this should reach US$ 109.3 billion or 7.7 per cent of total investment. 

Ministry of Tourism aims to create a comprehensive and coordinated framework for promoting golf tourism in India, 

capitalising on the existing work that is being carried out, and building upon the strength of India‘s position as the 

fastest growing free market economy. 

Source: IBEF ( www.ibef.org) 


India - Budget 2011-12 

The Budget for 2011-12 has been announced by the Union Finance Minister, Mr Pranab Mukherjee, in Parliament on 

February 28, 2011. 

Highlights of Budget 2011-2012 

OVERVIEW OF THE ECONOMY 

 

Gross Domestic Product (GDP) estimated to have grown at 8.6 per cent in 2010-11 in real terms. Economy has 

shown remarkable resilience 

Indian economy expected to grow at 9 per cent with an outside band of +/- 0.25 per cent in 2011-12 

Exports have grown by 29.4 per cent, while imports have recorded a growth of 17.6 per cent during April to January 

2010-11 over the corresponding period last year 

SUSTAINING GROWTH 

 

Fiscal consolidation targets at Centre and States have shown positive effect on macroeconomic management of the 

economy 

Direct Taxes Code (DTC) to be finalised for enactment during 2011-12. DTC proposed to be effective from April 1, 

2012 

Areas of divergence with States on proposed Goods and Services Tax (GST) have been narrowed. As a step towards 

roll out of GST, Constitution Amendment Bill proposed to be introduced in this session of Parliament 

INVESTMENT ENVIRONMENT 

 

 

Discussions underway to further liberalise the FDI policy 

SEBI registered mutual funds permitted to accept subscription from foreign investors who meet KYC requirements 

for equity schemes 

Rs 6,000 crore (US$ 1.30 billion) to be provided during 2011-12 to enable public sector banks to maintain a minimum 

of Tier I CRAR of 8 per cent 

Rs 500 crore (US$ 108.5 million) to be provided to enable Regional Rural Banks to maintain a CRAR of at least 9 

per cent as on March 31, 2012 

―India Microfinance Equity Fund‖ of Rs 100 crore (US$ 21.7 million) to be created with SIDBI. 

AGRICULTURE 

 

Rs. 300 crore (US$ 65.1 million) expenditure to promote 60,000 pulses villages in rain fed areas for increasing crop 

productivity and strengthening market linkages 

Proposal to spend Rs. 300 crore (US$ 65.1 million) to promote oil palm plantation in 60,000 hectares and Rs. 300 

crore (US$ 65.1 million) for the initiative on vegetable cluster 

Rs 400 crore (US$ 86.8 million) is proposed to be spent to improve rice based cropping system in the Eastern Region. 

SOCIAL SECTOR 

 

 

The allocation for social sector has been increased by 17 per cent to Rs. 1,60,887 crore (US$ 34.9 billion) which 

amounts to 36.4 per cent of the total plan allocation. 

Remuneration for Anganwadi workers have been increased to Rs. 3000 (US$ 65.1) per month from Rs. 1500 (US$ 

32.6) per month while the Anganwadi helpers will get Rs. 1500 (US$ 32.6) per month. This will be effective from 1st 

April 2011 benefiting about 22 lakh Anganwadi workers and helpers. 



EDUCATION 

 

 

The allocation on education has been increased by 24 per cent to Rs 52,057 crore (US$ 11.3 billion). Sarva Shiksha 

Abhiyan gets Rs 21,000 crore (US$ 4.6 billion) which is 40 per cent higher than the previous year‘s allocation of 

Rs. 15,000 crore (US$ 3.3 billion) 

The Finance Minister also proposed to introduce a scholarship scheme for needy students belonging to the Scheduled 

Castes and Scheduled Tribes studying in classes IX and X. It would benefit about 40 lakh students 

HEALTH 

 

Plan allocation for Health has also been increased by 20 per cent to Rs 26,760 crores (US$ 5.8 billion). The 

Rashtriya Swasthaya Bima Yojana will be extended to the unorganized sector workers in hazardous mining and 

associated industries 

HOUSING SECTOR 

 

 

 

 

 

Existing scheme of interest subvention of 1 per cent on housing loan further liberalized 

Existing housing loan limit enhanced to Rs 25 lakh (US$ 54,271.1) for dwelling units under priority sector lending 

Provision under Rural Housing Fund enhanced to Rs 3,000 crore (US$ 651.3 million) 

To enhance credit worthiness of economically weaker sections and LIG households, a Mortgage Risk Guarantee 

Fund to be created under Rajiv Awas Yojana 

Central Electronic Registry to prevent frauds involving multiple lending on the same immovable property to become 

operational by March 31, 2011 

INFRASTRUCTURE AND INDUSTRY 

 

 

 

 

 

Allocation of Rs 2,14,000 crore (US$ 46.5 billion) for infrastructure in 2011-12. This is an increase of 23.3 per cent 

over 2010-11. This also amounts to 48.5 per cent of total plan allocation 

Government to come up with a comprehensive policy for further developing PPP projects 

IIFCL to achieve cummulative disbursement target of Rs 20,000 crore (US$ 4.3 billion) by March 31, 2011 and Rs 

25,000 crore (US$ 5.4 billion) by March 31, 2012 

Under take out financing scheme, seven projects sanctioned with debt of Rs 1,500 crore (US$ 325.6 million). Another 

Rs 5,000 crore (US$ 1.1 billion) will be sanctioned during 2011-12 

To boost infrastructure development, tax free bonds of Rs 30,000 crore (US$ 6.5 billion) proposed to be issued by 

Government undertakings during 2011-12 

NATIONAL MANUFACTURING POLICY 

 

 

 

 

 

 

Share of manufacturing in GDP expected to grow from about 16 per cent to 25 per cent over a period of 10 years. 

Government will come out with a manufacturing policy 

Two Committees set up for greater transparency and accountability in procurement policy; and for allocation, pricing 

and utilisation of natural resources 

Issues relating to reconciliation of environmental concern from various departmental activities including those related 

to infrastructure and mining to be considered by a Group of Ministers 

National Mission for hybrid and electric vehicle to be launched 

Financial Assistance to be made available for metro projects in Delhi, Mumbai, Bengaluru, Kolkata and Chennai 

Capital investment in fertiliser production proposed to be included as an infrastructure sub-sector 

INNOVATIONS 

National Innovation Council set up to prepare road map for innovations in India 

Special grant provided to various universities and academic institutions to recognise excellence 



SKILL DEVELOPMENT 

Additional Rs 500 crore (US$ 108.5 million) proposed to be provided for National Skill Development Fund during 

the next year 

An international award with prize money of Rs 1 crore (US$ 217,085) being instituted for promoting values of universal 

brotherhood as part of National celebrations of 150th Birth Anniversary of Gurudev Rabindranath Tagore 

BUDGET ESTIMATES 

Gross Tax receipts are estimated at Rs 9,32,440 crore (US$ 202.4 billion) 

Non-tax revenue receipts estimated at Rs 1,25,435 crore (US$ 27.2 billion) 

Total expenditure proposed at Rs 12,57,729 crore (US$ 273 billion) 

Increase of 18.3 per cent in total Plan allocation 

Increase of 10.9 per cent in the Non-plan expenditure 

DIRECT TAX 

Finance Minister reiterated that the Direct Tax Code to come into effect from 01 st April, 2012. 

Surcharge on tax for domestic companies reduced from 7.5% to 5% and for foreign companies reduced from 2.5% 

to 2%. The corporate tax rate remains unchanged. 

 

 

No change in tax rates applicable to partnership firms, LLPs, Association of Persons and other taxable units. The 

maximum marginal rate of tax is proposed to remain at 30% without any surcharge. 

Rate of Minimum Alternate Tax (MAT) increased from 18% to 18.5%. MAT to be levied on developers of Special 

Economic Zone (SEZ) as well as units operating in SEZ. 

Dividend Distribution Tax (DDT) @15% to be levied on developers of SEZs. Consequently, such dividends would 

be exempt in the hands of shareholders. 

Foreign dividend received by Indian Company from its foreign subsidiary to be taxed at the rate of 15%. 

Government to create special purpose vehicles in the form of infrastructure debt fund to attract foreign funds. Interest 

payment subject to withholding tax @ 5 % instead of 20%. Also, income from such funds to be exempted from 

tax. 

Rationalization of Transfer Pricing regulations. 

 

 

 

 

Proposal to enter into 11 new Tax Information Exchange Agreements and 13 new DTAAs. Also, to revise 10 existing 

DTAAs. 

Filing of annual information by non-residents regarding the activities of their liaison offices in India made mandatory. 

Introduction of Anti Avoidance provisions with reference to transactions involving jurisdictions that do not exchange 

of information to check tax evasion. These jurisdictions would be notified by the Government as 'non-cooperative 

jurisdictions'. 

INDIRECT TAX 

- Central Excise 

Central Excise Duty to remain unchanged at 10%. 

1% Excise Duty to be levied on 130 consumer items which were earlier exempted. 

- Customs 

Peak rate of Customs Duty maintained at 10%. 

To introduce self-assessment in customs EDI to expedite clearance of cargo - self declaration to be accepted. 

Specified hybrid auto parts to get Custom Duty exemption. 

Basic Customs Duty @2.5% being imposed on import of aircrafts for non-scheduled operations. Exemption from 

Additional Duty of Customs (CVD) and Special Additional Duty of Customs (SAD) would continue. 



- Service 

Service Tax rate remains unchanged at 10% 

2 New categories of services added - (i) air conditioned restaurants serving liquor, (ii) short term hotel accommodation. 

Scope of certain existing taxable services has been expanded to bring within Service Tax net. 

Legal services expanded to include (i) legal services provided by business entities to any person, (ii) representational 

services before any court, tribunal or authority provided by any person to business entities, (iii) services of 

arbitration provided by arbitral tribunal to business entities. 

The above changes (new services & expansion) will come into effect from a date to be notified after enactment of 

Finance Bill, 2011. 

A new scheme is being introduced to refund of Service Tax to SEZ units and developers. Existing scheme is being 

superseded. 

OTHER PROPOSALS 

 

 

 

 

 

 

 

 

New Companies Bill to be introduced in the current session of Parliament. 

Government to retain 51% control in central companies. 

Foreign Investors complying with the KYC norms permitted to invest in Mutual funds. 

FII limit in corporate bonds raised to USD 40 Billion. 

Food Security Bill to be introduced. 

Proposed further liberalization in FDI policy. 

Additional banking license to private sector players proposed 

Group of Ministers to be formed for environment clearances especially in mining 


INDIAN TRADE QUERIES 

Sl.No Products – Importers/Dealers 

in Sri Lanka 

1. Gem & Jewellry, 

Precious Stone 

Company Name 

M/s East International 

10 th Floor, Avdhesh House, 

Near A.E.C Sarkhej – Gandhinagar 

Highway, Ahmedabad – 380054 

Tel/Fax/E-mail 

Tel: 0091-79-26851913/26854929 

Fax: 0091-79-26854965/26854926 

E-mail: eastad1@gmail.com 

2. Ceramic Tiles Mr. Bhavesh Patel, Export Manager 

M/s Pavit Ceramics Pvt. Ltd., 

302-303, Campus Corner – II, 

Opp. Prahladnagar Garden, 

100ft Road, Satellite, 

Ahmedabad – 380015 

E-mail: bhavesh.patel@pavits.com 

Website: www.pavits.com 

3. Rice, Granite & 

Marbles, Tobacco 

Products 

4. Rice, Agricultural 

Products, 

Spices, Poultry 

and Animal 

Feed Products 

5. Fruits & Vegetables 

6. Poultry Products 

M/s DSR Exports 

H.No. 10-36-11, 2 nd Line, 

Janathapet (South), Kavali – 524201, 

Nellore – Dt., Andhra Pradesh 

Mr. Satla R.K. 

Deputy General Manager 

M/s Uniphos Agro Industries Limited 

Readymoney Terrace, 

167, Dr. Annie Beasant Road, Worli, 

Mumbai – 400018 

M/s CN Exports 

99, Onpathampalikadu, 

Karkoodulpatty – 636202, 

Rasipuram – TK, Namakkal – Dt., 

Tamil Nadu 

Mr. S. Bommannan 

Senior Manager – Intl. Sales & Log. 

M/s SKM Egg products Export 

(India) Limited 

Erode, Tamil Nadu 

E-mail: dsubbareddy@yahoo.co.in 

Tel: 0091-22-61233558/61233500 

Fax: 0091-22-66606689 

E-mail: satlark@uniphos.com 

E-mail: cnexportsk@gmail.com 

E-mail: sales@skmegg.com 

7. Pharmaceuticals Mr. Yogin 

M/s Sayona Group of Companies 

201, 202 University Plaza Vijay Char 

Rasta, Navrnagpura, 

Ahmedabad – 380006 

8. Sugar Mr. Raj Talwar, 

Director (International Business) 

M/s Amco Industrial Enterprises 

Pvt. Ltd., E-161, Phase – 4, 

Focal Point, Ludhiana 

Tel: 0091-79-66314147-48 

E-mail: sayona16@gmail.com 

Tel: 0091-161-4321000-32 

Fax: 0091-161-4321015 

E-mail: raj@amcogroups.com 


INDIAN TRADE QUERIES ….continues 

9. 

Textiles, Spices, 

Pharmaceuticals 

Mr. D.P. Venugopal 

M/s DMP Enterprises 

No. 154, NTK Street, 

Podatur Pet – 631208, Trivallur 

Dt., 

Tamil Nadu 

10. Electrical Products M/s Super Impex 

305, Adhyaru Ind. Estate, 

Sunmill Compound, Lower 

Parel, 

Mumbai – 400013 

Tel: 0091-22-66340200/66615090/91 

Fax: 0091-22-66341933 

E-mail: rakesh@superimpex.com 

11. Tour Operators Mr. Kaushik Padhye E-mail: kaushik.padhye@gmail.com 

12. 

13. 

14. 

Medical – Surgical 

Equipment, Laboratory 

–Scientific 

Instruments, 

Chemicals, Glassware, 

Plastic Products, 

Stationery 

Items 

Terpineol, Chemicals 

Aluminum Composite 

Panels 

Laboratory – 

15. Scientific Instruments, 

Chemicals, 

Glassware 

16. Dyes & Dyestuff, 

Chemicals 

Mr. Babu Bantipuli 

General Manager 

M/s Deluxe Scientific Surgico 

Pvt. Ltd., 

DESCO House, B-19, 1 st Floor, 

Functional Industrial Estate, 

I.P. Extension, New Delhi – 

110092 

All Indian Manufacturers Organization 

812, Tulsiani Chambers, 

Nariman Point, Mumbai – 

400021 

Mr. Anuradha Singhai 

Vice President 

Indo – European Chamber of 

Commerce & Industry 

F – 101, Raksha Towers, Kolar 

Road, 

Chunabhatti, Bhopal (MP) – 

462016 

M/s Advanced Technology Inc., 

Near B. D. Sen. Sr. School, 

Ambala Cantt – 133001, Haryana 

Mr. Deepak Agarwal 

M/s Chromex Dyes 

Tel: 0091-11-22157334/22157326 

Fax: 0091-11-22163093 

E-mail: babubandari@gmail.com 

Tel: 0091-22-22824089 

Fax: 0091-22-22841281 

E-mail: power@bom3.vsnl.net.in 

Tel/Fax: 0091-755-4270989 

E-mail: info@iecci.com 

Website: www.iecci.com 

Fax: 0091-171-4007718 

E-mail: sales@aticoindia.com 

aticoindia@gmail.com 

E-mail: chromexdyes@gmail.com 


SRI LANKA TRADE QUERIES 

I. Wants to Import/Purchase 

Sl.No. Products Company Name & Address Tel/Fax/E-mail 

1. Palm Oil Mr. Ranjith Jayasekera, Director 

M/s McCallum Group 

46/38, Nawam Mawatha, 

Colombo -02 

2. 

3. 

Fabrics, Silk Fabrics 

Stainless Steel Products, 

Stainless Steel Kitchenware 

Mr. D. Sudharshanan 

M/s Goukul Textiles 

116/13, First Cross Street, 

Colombo-11 

Mr. Irvine Bertram Jeganathan 

M/s Zosel Sri Lanka 

Tel: 0094-11-5561000 

Fax: 0094-11-5359948 

E-mail: ranjitha@mccallum.lk 

Tel: 0094-11-5100557 

E-mail: infosuda@yahoo.com 

E-mail: zosel_ceylon@sltnet.lk 

4. Electrical Items Mr. Chamara E-mail: uragoda@tradesmann.com 

5. 

Cotton Cambric 

Mr. Eranda 

M/s Wijeweera Apparels (Pvt) 

Ltd, 

191/5, Galle Road, Walgama, 

Matara 

6. Acrylic Yarn Chamber of Commerce and Industry 

of Central Province 

P.B.Box. 200, Daharmaraja Road, 

Kandy 

7. Incense Stick Mr. Sene Weerasinghe 

Managing Director 

M/s Don Peoros Weerasinghe 

Ltd., 

No. 7, Sri Wijayawardenrama 

Road, Nugegoda 

Tel/Fax: 0094-41-2223557 

E-mail: wearwell.international@gmail.com 

Tel: 0094-81-5623598/2205244 

Fax: 0094-81-4940685 

E-mail: info@chamberkandy.org 

Website: www.chamberkandy.org 

Tel: 0094-11-2852888 

Fax: 0094-11-2813351 

II. Services 

Sl.No 

. 

1. 

Products Company Name & Address Tel/Fax/E-mail 

“Tally” Accounting and 

Inventiry Management 

System – Solution Support 

Services 

Mr. Prasad Wijesuriya 

Head & Sales Marketing 

Advanced Business Solution 

(Pvt) Ltd., 

No. 25, 1/1, Lauries Place, 

Colombo-04 

Tel: 0094-11-4505500 

Fax: 0094-11-2500254 

E-mail: prasad@abs.lk 

Website: www.abs.lk 


INDIAN TRADE FAIRS AND BUSINESS EVENTS 

SL No Events Organiser (s) 

19 th Convergence India 2011 Expo which is 

held from the 24 th to the 26 th of March 2011. 

The Exhibitions India Group 

Ms. Bunny Sidhu, 

Tel: +91 11 42795031, 

Email: bunnys@eigroup.in 

1. 

or Mr. Vipul Mehra, 

Tel: +91 9910204131, 

Email: vipulm@eigroup.in or 

Mr. Sambit Mund, 

Tel: +91 9312655071, 

Email: sambitm@eigroup.in 

Website: www.convergenceindia.org 

2. 

3. 

4. 

5. 

6. 

Eco-Products International Fair 2011 from 3- 

6 th of March 2011 at Pragati Maidan, New 

Delhi, India. 

Die & Mould International Exhibition from 7- 

10 th April 2011 at Chennai Trade Centre, 

Chennai, India. 

Buyer Seller Meet from 11-12 th , March 2011 

at Pragati Maidan Exhibition Complex New 

Delhi, India 

2 nd Textech International Expo 2011 from 3- 

5 th of March 2011at Sri Lanka Exhibition & 

Convention Centre (SLECC), Sri Lanka. 

9 th International Railway Equipment Exhibition 

from 28-30 th of September 2011 at Pragati 

Maidan, India. 

Ministry of Commerce and Industry (Department of 

Industrial, Policy & Promotion), 

Udyog Bhawan, New Delhi, India. 

Tel : +91 11-23061814, 

Fax : +91 11-23063656. 

TAGMA, 

A-33, Nand Jyot Indl, Estate, Safed Pool, A.K. Road, 

Mumbai – 400 072. 

Tel: 0091 22 28526876/28508976, 

Fax: 0091 22 2850 3273, 

Email: mumbai@tagmaindia.org, 

Website: www.tagmaindia.org 

APEDA, 

3 rd Floor, NCUI Building, 3 Siri Institutional Area, 

August Kranti Marg (Opp. Asiad Village), 

New Delhi – 110 016. 

Tel : +91-11-26513204, 

Fax : +91-11-26534870, 

Email: headq@apeda.com 

Website: www.apeda.com 

CEMS, 

74, Satya Niketan, Ground Floor, 

New Delhi 110 021, 

India. 

Tel : +91 11 24105201/4, 

Fax: +91 11 24105205 

Email : cems@cemsindia.in, 

Website: www.cemsindia.com 

CII, 

Trade Fairs Division, Plot No.249-F, 

Udyog Vihar, Phase IV, 

Gurgaon – 122 015, 


Tel : +91 124-4014060/7, 

Email : cm.john@cii.in, 

Website: www.ireeindia.com 


INDIAN TRADE FAIRS AND BUSINESS EVENTS 

7. 

8. 

9. 

10. 

11. 

5 th Power Sri Lanka 2011 from 16-18 th of 

June 2011at Sri Lanka Exhibition & Convention 

Centre (SLECC), Sri Lanka. 

Buyer Seller Meet 2011 (IFCOMA) from 2-3 rd 

of March 2011 at Galle Face Hotel, Sri 

Lanka. 

Metal Buildings & Steel Structures Expo 

2011 from 23-25 th of June 2011 at Pragati 

Maidan, New Delhi, India. 

Indo-South Asian Reverse Buyer Seller 

Meet 2011 from 2-4 th of March 2011 at Kolkata 

and New Delhi, India. 

Panelexpo 2011 from 15-17 th of September 

2011 at Pragati Maidan, New Delhi, India. 

CEMS, 

74, Satya Niketan, Ground Floor, 

New Delhi 110 021, 


Tel : +91 11 24105201/4, 

Fax: +91 11 24105205 

Email : cems@cemsindia.in, 

Website: www.cemsindia.com 

IFCOMA, 

A-10/A, FDDI Complex, Sector 24, 

Noida – 201 301, 


Tel : +91 120 4225763, 

Fax: +91 120 2411572, 

Email : ifcoma@airtelmail.in 

Website: www.ifcoma.org 

INIS Enterprises, 

116, Atlanta Estate, Vitth Bhatti, Goregaon, 

Mumbai- 400 063, 


Tel : +91 22 28763111, 

Fax: +91 22 28765444, 

Email : daisy@inis-enterprises.com 

Website: www.mbs-india.com 

EEPC India, 

'Vandhna', 4 th Floor, 11, Tolstoy Marg, 

New Delhi - 110 001, 


Tel : +91 11 23711124, 

Fax: +91 11 23310920, 

Email : eepcto@eepcindia.net 

Website: www.eepcindia.org 

FIPPI, 

404, Vikrant Tower, 4, Rajendra Place, 

New Delhi - 110 008, 


Tel : +91 11 25755649, 

Fax: +91 11 25768639, 

Email : fippi@fippi.org 

Website: www.fippi.org 


USEFUL BIZ LINKS 

National Portal www.india.gov.in 

Confederation of Indian Industry (CII) http://www.ciionline.org 

Federation of Indian Chambers of Commerce & Industry (FICCI) www.ficci.com 

Associated Chambers of Commerce and Industry of India (ASSOCHAM) http://www.assocham.org 

National Association of Software & Service Companies http://www.nasscom.in 

Department of Industrial Policy & Promotion http://dipp.nic.in 

India Brand Equity Foundation http://www.ibef.org 

Ministry of Overseas Indian Affairs http://moia.gov.in 

Overseas Indian Facilitation Centre (OIFC) http://www.oifc.in 

Indian Investment Centre (IIC) http://iic.nic.in 

Reserve Bank of India (RBI) http://www.rbi.org.in 

Ministry of Commerce & Industry (Deptt of Commerce) http://commerce.gov.in/ 

Ministry of Law, Justice & Company Affairs, Department of Company Affairs (to register and check status of a 

company) http://www.mca.gov.in/ 

Ministry of Finance www.finmin.nic.in 

Central Board of Excise & Customs (Customs tariffs) www.cbec.gov.in 

Income Tax Department http://www.incometaxindia.gov.in 

Directorate General of Foreign Trade (Trade Complaints) http://dgft.delhi.nic.in 

India Trade Promotion Organisation (ITPO) http://www.indiatradepromotion.org 

Federation of Indian Export Organisations (FIEO) http://www.fieo.com 

National Centre for Trade Information (NCTI) http://www.nic.in/ncti 

Indian Council of Arbitration http://www.ficci.com/icanet 

Export Credit Guarantee Corporation (ECGC) http://www.ecgcindia.com 

Export Import Bank http://www.eximbankindia.com 

Export Inspection Council http://www.eicindia.org 

The State Trading Corporation of India Ltd. http://www.stcindia.com 

Minerals and Materials Corporation Limited www.mmtclimited.com 

India Credit Rating Agency Ltd (ICRA) www.icra.in 

Credit Rating & Information Services India Limited (CRISIL) http://www.crisil.com/ 

Engineering Export Promotion Council http://www.eepcindia.org 

Overseas Construction Council of India http://projectexports.nic.in 

Agricultural and Processed Food Products Exports Developments Authority (APEDA) http://www.apeda.com/ 

Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council (CHEMEXCIL) http:// 

www.chemexcil.gov.in 

Pharmaceuticals Export Promotion Council (Pharmexcil) www.pharmexcil.com 

Pesticides Manufacturers & Formulators Association of India www.pmfai.org 

CAPEXIL http://www.capexil.com 

Plastics & Linoleums Export Promotion Council http://www.plexcon.org 

Council for Leather Exports http://www.leatherindia.org 

Gem and Jewellery Export Promotion Council http://www.gjepc.org 

Cashew Export Promotion Council http://www.cashewindia.org 

Electronics & Computer Software Export Promotion Council www.escindia.com 

Apparel Export Promotion Council http://www.aepcindia.com 

Carpet Export Promotion Council http://www.indiancarpets.com 

Cotton Textile Export Promotion Council http://www.texprocil.org 

Export Promotion Council for Handcrafts http://www.epch.com 

Handloom Export Promotion Council http://www.hepcindia.com/ 

The Indian Silk Export Promotion Council http://www.silkepc.com 

Synthetic & Rayon Textile Export Promotion Council www.synthetictextiles.org 

Marine Products Export Development Authority (MPEDA) http://www.mpeda.com/ 

Rubber Board http://www.rubberboard.com 

Tea Board http://tea.nic.in 

Spices Board http://www.spicesboard.org/ or www.indianspices.com 

Coir Board http://coirboard.nic.in/ 

Indian Institute of Packaging http://iip-in.com 

Indian Diamond Institute http://www.diamondinstitute.net 

GSI India (formerly EAN-India) http://www.gs1india.org 

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