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Economic Diplomacy Economic Diplomacy: India’s Experience Edited by Kishan S Rana Bipul Chatterjee D-217, Bhaskar Marg, Bani Park Jaipur 302016, India With its headquarters and three programme centres in Jaipur, India, one in Chittorgarh, India, a liaison office in New Delhi, India and resource centres in Calcutta, India; Lusaka, Zambia; Nairobi, Kenya; Hanoi, Vietnam and in Geneva, Switzerland the organisation has established its relevance and impact in the economic policy-making circles and among the larger development community in the developing world and at the international level. Published in India by CUTS International, Jaipur ©CUTS International, 2011 First published: January 2011 Second published: March 2012 Second Reprint: January 2018 The material in this publication may be reproduced in whole or in part and in any form for education or non-profit uses, without special permission from the copyright holders, provided acknowledgment of the source is made. The publishers would appreciate receiving a copy of any publication, which uses this publication as a source. No use of this publication may be made for resale or other commercial purposes without prior written permission of CUTS. The views expressed here are those of the authors and can therefore in no way be taken to reflect the positions of CUTS International and the institutions with which the authors are affiliated. ISBN: 978 81 8257 139 6 Printed in India by Jaipur Printers Private Limited, Jaipur Published by Consumer Unity & Trust Society D-217, Bhaskar Marg, Bani Park Jaipur 302016, India C O N T E N T S Acknowledgement ix Abbreviations xi Note on Contributors xv Foreword xxv Preface xxxi I. Context and Objectives 1. Introduction: The Role of Embassies 3 Kishan S Rana and Bipul Chatterjee 2. Best Practices – A Personal Narrative 27 Arjun Asrani 3. Commercial Diplomacy in Mexico (2000-04) 35 Anup Mudgal 4. Experiences in China and Down Under 41 Sujan Chinoy 5. Role of Embassies in Commercial Negotiations 51 Shiv N Malik II. Export Promotion 6. Exports of Frozen Meat and Tea from India to Egypt 69 A Gopinathan vi Contents 7. Project Granite at the New Airport in Israel 79 Harsh V Shringla 8. Accessing US Footwear Market: Participation in World Shoe Association Fairs 85 V S Seshadri 9. Upholding the Rule of Law 95 Amar Sinha 10. Promotion of Indian Fashion 103 Apoorva Srivastava 11. Economic Diplomacy in the Gulf Region and Elsewhere 111 M P M Menon III. Investments and Economic Aid 12. Investing in the Pharmaceutical Industry in Brazil 123 S Swaminathan 13. Promoting UAE Investments into India: The Role of the Indian Embassy 129 Talmiz Ahmad 14. The TEAM-9 Lines of Credit: Winning Friends and Opening New Markets 141 Navdeep Suri 15. ITEC Programme Experience: India and Ethopia 153 Gurjit Singh IV.Managing Networks and the Regulatory Environment 16. Multilateral Economic Diplomacy – The Brussels Experience 163 Amar Nath Ram Contents vii 17. India-Sri Lanka FTA – A Case Study 171 Siddhartha Mitra 18. The Crafting of the India-Sri Lanka Free Trade Agreement 177 Leela K Ponappa 19. Strategic Dialogue: Track II Diplomacy 189 Tarun Das 20. Networking with Local Partners: Experience in Silicon Valley, Mauritius and Germany 197 Kishan S Rana 21. India at the WTO: From Scepticism to Activism 209 Mohan Kumar V. Today’s Challenges 22. Latin America – Energising India 223 Deepak Bhojwani 23. Connecting People, Strengthening Ties: SAARC Car Rally 2007 229 N Srinivasan 24. Hydropower Diplomacy in Nepal 237 Jawed Ashraf 25. Promoting Brand India in South Africa 245 Rajiv Bhatia 26. An Industry-Government Partnership for 2020 255 Som Mittal 27. Concluding Thoughts 263 Kishan S Rana and Bipul Chatterjee Index 275 A C K N O W L E D G E M E N T his book highlights some of the challenges of India’s economic diplomacy in the globalised world of the 21st TCentury. It bears testimony to the vigour of India’s economic diplomacy. The essays narrate the multifarious contributions that Indian embassies and consulates make, handling external economic promotion as one of their core activities. We express our gratitude to the essay authors: Talmiz Ahmad, Jawed Ashraf, Arjun Asrani, Rajiv Bhatia, Deepak Bhojwani, Sujan Chinoy, Tarun Das, A Gopinathan, Mohan Kumar, Shiv N Malik, M P M Menon, Siddhartha Mitra, Som Mittal, Anup Mudgal, Amar Nath Ram, Leela K Ponappa, V S Seshadri, Harsh V Shringla, Gurjit Singh, Amar Sinha, N Srinivasan, Apoorva Srivastava, Navdeep Suri and S Swaminathan. We are indebted to Nirupama M Rao, Foreign Secretary of India for writing an encouraging Foreword. Our thanks are also due to several MEA officials, including Navdeep Suri, Joint Secretary (PD) and Devinder Kaur, Administrative Officer (PAI). We gratefully acknowledge the contribution of Madhuri Vasnani and Mukesh Tyagi of CUTS in editing and layouting the book. Words alone cannot convey our gratitude to those that have contributed in every big and small way to this volume. Yet, the world thrives on words. Any error is our responsibility. KISHAN S RANA BIPUL CHATTERJEE A B B R E V I A T I O N S ACP African, Caribbean and Pacific ADIA Abu Dhabi Investment Authority ADIC Abu Dhabi Investment Council ANC African National Congress ANFD Australian National Field Days APEDA Agricultural Products Export Development Authority ASEAN Association of Southeast Asian Nations BEE Black Economic Empowerment BEML Bharat Earth Movers Limited BN billion BSM buyer-seller meet Cd’A charge d’ affaires CHOGM Commonwealth Heads of Government Meeting CII Confederation of Indian Industry CLE Council for Leather Export COMESA Common Market for Eastern and Southern Africa CTL Coal-to-Liquid DIFC Dubai International Financial Centre EC European Community, European Commission ECOWAS Economic Community of West African States EEPC Engineering Export Promotion Council EFTA European Free Trade Association EP European Parliament xii Abbreviations EPCH Export Promotion Council for Handicrafts EPG eminent persons group EU European Union EXIM Export-Import (bank) FDCI Fashion Design Council of India FDI foreign direct investment FICCI Federation of Indian Chambers of Commerce and Industry FIEO Federation of Indian Export Organisations FTA free trade agreement GATT General Agreement on Tariffs and Trade GCC Gulf Cooperation Council GDP gross domestic product GoI Government of India GSP Generalised System of Preference HIPC Highly Indebted Poor Countries HoM head of mission HS Harmonised System IAFS India Africa Forum Summit IBF India Business Forum IBSA India-Brazil-South Africa ICT information and communication technology IETF Indian Engineering Trade Fair IGCC Indo-German Chamber of Commerce IGNOU Indira Gandhi National Open University IMF International Monetary Fund IPIC international petroleum investment company IT information technology ISLFTA India-Sri Lanka Free Trade Agreement ITC International Trade Centre ITEC Indian Technical and Economic Cooperation ITPO India Trade Promotion Organisation JSM Japanese steel mills LoC lines of credit, letter of credit Abbreviations xiii MEA Ministry of External Affairs MECL Mansarovar Energy Colombia Ltd MEP Members of the European Parliament MFN most-favoured nation MMTC Minerals and Metals Trading Corporation MN million MoC Ministry of Commerce MoF Ministry of Finance MoS Minister of State MoU memorandum of understanding NAFTA North American Free Trade Agreement NASSCOM An association that serves the interests of IT services companies NEPAD New Partnership for Africa’s Development NGO non governmental organisation NMDC National Mineral Development Corporation NSAs non-state actors NTBs non-tariff barriers ODA official development assistance OPEC Organisation for Petroleum Exporting Countries OVL ONGC Videsh Limited PEC Project Equipment Corporation PMO Prime Minister’s Office PPP public private partnership PSU public sector undertaking RBI Reserve Bank of India RoO rules of origin RTAs regional trading agreement S&T science and technology SAARC South Asian Association for Regional Cooperation SABF South African Business Forum SAFTA South Asian Free Trade Area xiv Abbreviations SAPTA SAARC Preferential Trading Arrangement SEZ special economic zone SFL Sundaram Fasteners Limited SIPA Silicon Valley Indian Professionals Association SME small and medium enterprise SRTEPC Synthetic and Rayon Textiles Export Promotion Council SUV sports utility vehicles TC Technical Cooperation TiE The Indus Entrepreneurs Tr trillion UAE United Arab Emirates UNDP United Nations Development Programme UNESCAP United Nations Economic and Social Council for the Asia and Pacific UNSC UN Security Council USSR Union of Soviet Socialist Republics WEF World Economic Forum WTO World Trade Organisation N O T E O N C O N T R I B U T O R S Talmiz Ahmad joined the Indian Foreign Service in 1974 and, after several postings in the Gulf and West Asia, he became Ambassador to Saudi Arabia in 2000. Later, he was Ambassador to Oman (2003-04) and UAE (2007-10). He also served as Additional Secretary for International Cooperation in the Ministry of Petroleum and Natural Gas and as Director General of the Indian Council for World Affairs. He returned to Saudi Arabia for his second stint as Ambassador in January 2010. His book, Reform in the Arab World – External Influence and Regional Debates was published in 2005. His new book, Children of Abraham at War – The Clash of Messianic Militarisms, was published in 2010. Jawed Ashraf joined Indian Foreign Service in 1991 and is currently serving as Joint Secretary (Americas) in the Ministry of External Affairs. He was Counsellor at the Indian Embassy in Nepal from June 2004-September 2007. He has served in various assignments in New Delhi, Frankfurt, Berlin and Washington DC. Arjun Asrani joined the Indian Foreign Service in 1957 and remained a career diplomat for 35 years until 1992. During this period, he served as Ambassador to Japan, Thailand and Libya, and Consul General in New York. He also had postings in Switzerland and Pakistan and was Special Secretary in the Ministry of External Affairs and Joint Secretary in the Ministry of Finance.
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