June-2012-National

NATIONAL AFFAIRS

Government extends sops for exports
On June 5, 2012, announcing the annual Foreign Trade Policy, Commerce and Industry Minister Anand Sharma said the sops would continue for exporters in sectors like capital goods and textiles to help them mitigate the impact of “fragile” recovery of global economy.

Aiming to provide some relief to exporters hurt by global slowdown, the government has extended DEPB (Duty Entitlement Pass Book) scheme for six months or till June 30, 2011. Under this scheme, the government reimburses duties on imported inputs used in exports.

Extension of zero duty EPCG (Export Promotion for Capital Goods) for one more year, that is till March 31, 2011, and SHI (Status Holders Incentive) scheme for one more year till March 31, 2011, was also announced.

The government has retained the $500-billion target for exports in 2013-14. This would entail a hefty 39 per cent growth in exports in 2013-14. Exports expanded by 21 per cent in 2011-12.

Quota cannot be on religious basis: SC
On June 13, 2012, the Supreme Court refused to provide any relief to the government on the controversial 4.5 per cent sub-quota for minorities even as the Centre clarified that the reservation would be restricted to students belonging to the most backward classes among the Sikhs, Christians and the Muslims.

In a last-ditch effort, the government pleaded with the SC to at least allow the Indian Institutes of Technology (IITs) to provisionally implement the reservation provision for the 2012-13 academic year.

However, a Bench comprising Justices K.S. Radhakrishnan and J.S. Khehar refused to stay, partially or otherwise, the May 28, 2012, Andhra Pradesh High Court verdict striking down the December 22, 2011, executive order offering the sub-quota, carved out from the 27 per cent reservation for OBCs in educational institutions.

Third US-India Strategic Dialogue
The third US-India Strategic Dialogue was held in the month of June 2012 during the visit of India’s External Affairs Minister S.M. Krishna to USA. The Obama administration’s decision to exempt India from sanctions for its oil imports from Iran and the signing of a memorandum of understanding that paves the way for a US firm to construct nuclear power plants in Gujarat helped lift the mood during the meeting.

S.M. Krishna said the memorandum of understanding signed between Westinghouse Electric Co. and the Nuclear Power Company of India Ltd. “assumes special importance because of certain reservations which had crept in after we passed the Nuclear Liability Bill in Parliament.”

“This Westinghouse memorandum of understanding opens up new vistas of opportunities for business in the United States,” he added.

Meanwhile, India continued its quest for access to David Coleman Headley and Tahawwur Rana linked to the November 2008 terrorist attacks in Mumbai. Both Coleman and Rana are in a Chicago prison. Krishna raised the issue with US Secretary of State Hillary Rodham Clinton when they co-chaired the strategic dialogue at the State Department.

On Afghanistan, there is a distinct change of heart in Washington about India’s role in the Central Asian nation. The George W. Bush administration had issued a demarche in 2002 instructing India to reduce its footprint in Afghanistan to avoid upsetting Pakistan. Now, as the US-Pakistan relationship has grown strained and a 2014 deadline looms to withdraw US combat forces from Afghanistan, the Obama administration wants India to play a bigger role.

The US wants India to train Afghan security forces. Krishna said India was already doing so, but, he added, “India’s position is that this has to be Afghan-led and Afghan-owned. We are willing to assist them.”