Free Trade Agreements and Industrial Policy in changing global scenario

The Parliamentary Standing Committee on Commerce sought public suggestions on issues related with free trade agreements and industrial policy in changing global scenario.

http://164.100.47.5/webcom/typewise.aspx?type=DRSCRS

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Those desirous of submitting their views and suggestions to the Committee may send their written memoranda (either in English or Hindi) on the above subject to Shri J. Sundriyal, Director, Rajya Sabha Secretariat, 201, Second Floor, Parliament House Annexe, New Delhi-110001 (Tel.: 23034541) or e-mail at sundrial@sansad.nic.in within thirty days from January 3, 2012. Those willing to give oral evidence before the Committee, besides sending Memoranda are requested to indicate so. However, the decision of the Committee in this regard shall be final.

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I am  preparing the essay.hence the article is a ROUGH COPY and  so far incomplete
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This is the link that mentions about the subject
http://www.moneycontrol.com/news/current-affairs/parl-panel-seek-public-viewsfta-industrial-policy_804405.html#toptag
     The FTA with Thialand is delayed and may be sigbned by the midlle of this year.
Th link:-
http://www.moneycontrol.com/news/cnbc-tv18-comments/india-thailand-fta-deal-may-be-delayed_803683.html
Benefits NONE and disadvantages [LOSS OF SOVEREIGNTY,ONE WORLD TOTALITARIAN GOVERNMENT,ABOVE NATIONAL Laws and hence,the aim is COMPLETE DEREGLATION,Trans-Pacific Partnership?,Destrctiom of Local Businesses,in this case,Indian ones]
DEREGLATION example The Repeal of The Glass-Steagall Act By Clinton .
      FTA is also Globalization.That is the populace pay International prices but get LOCAL pays and perks.
      A person in the West may be paid in a better Currency,a better amount and have a better standard of living.So the above becomes CRUEL an ABSURD!

Suggestions may also focus on matters like "ways and means to promote domestic agriculture as well as strengthen local industries through FTAs; role of FTAs in flow of investments and capacity creation". Views on extent of sensitivity observed towards climate and environment in FTAs, flaws/discrepancies if any, prevailing in the present architecture of FTA and remedies have also been invited.

The committee, headed by Rajya Sabha MP Shanta Kumar has also taken up another subject - 'Industrial Policy in the Changing Global Scenario'. The comments may focus on issues like threats and opportunities before the current Industrial Policy in the face of changing global scenario; efficacy of the Policy in infusing competitiveness to enable India become a global trading power.

Besides, they may include views on structural reforms desired in present industrial policy especially in view of its role in creation of investment friendly atmosphere and gainful employment; quality of infrastructure and financial services required and its fine tuning with the Industrial policy, it said. Views can be sent either in English or Hindi on the subjects within 30 days from January 3, the release said

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http://164.100.47.5:8080/members/Website/Mainweb.asp?mpcode=2086

website of Shri Shanta kmar

shanta.kumar@sansad.nic.in

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send to 

 sundrial@sansad.nic.in 

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By 2nd February 2013

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http://en.wikipedia.org/wiki/Mahalanobis_model

Current Industrial Policy Of India

http://globeeconomics.blogspot.in/2008/09/current-industrial-policy-of-india.html

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      Indians seem to have inferiority complex or it is deliberately imbibed,to perceive OUR ideas are worthless and Western ones as THE ONLY CORRECT ONES.
      Free Trade Agreements REMOVE BARRIERS,which are REGULATIONS, meant to protect THE NATIONAL INTERESTS.On this cxount alone,FTAs are dangerous.
      [A group of countries that invoke little or no price control in the form of tariffs or quotas between each other.]..
      After the Global Financial Crisis n 2008,,even the USA started taking protectionist measures. FTA will make this impossible.Global players,who are Financially stronger[than Indians], can create crisis after crisis and usurp power and destroy nations.
     Already,after the 2008 Global financial crisis,India see,ms to be ruled over by
"some foreign forces" .There seems to a lot of SECRECY,resorted to,by the M M Singh Government,regarding many things.
      FTA will have no positive influence on India's Agriculture.But there is CONSPIRACY to usher in,US GMO Cos misusing the Food Security Bill,just like in the,so-called, Ind-US Nuke Deal and FDI in multibrand retail. 
      There is also a Conspiracy to shatter Domestic Agriculture and PSus by M M Singh and his ÏMF and World Bank-puppet,"subordinates",
       Coming to the Industrial Policy,the National manufacturing Policy of 2011,and the  proposed,NMIZs,try to achieve mainly the following which are extremely dangerous for India.
1.Complete deregulation,first in Industry for the Oligarchs and finally the Bankers etc.This will be similar to the Glass-Steagall Act by Clinton,which resulted in the bankers wrecking the Global Economy in 2008 with their UNREGULATED and HIGHLY LEVERAGED Derivatives.
2.Please google for Prans-pacific partnership,which is an extension of PPP,for the Oligarchs to gain complete control over sovereign Governments,making the latter answerable to the latter and compensate them,for,literally, ANYTHING AND EVERYTHING.
3.DEREGULATION is like doing away with the police,Military and the Justice System.What would happen in sch a case?
i)Criminals will rule the roost.The Nation will be CRIME-RIDDEN.
ii)The Nation wll be invaded
iii)Oit laws will rule the Nation.

Read more: http://www.investopedia.com/terms/f/free_trade_area.asp#ixzz2J4WzaPuv"I`ll be sending my opnion. 

1.FTA is for usheg One World Totalitarian Government,by mag Nations LOSE Sovereignty.
FTA means the TRADE is FREE of National laws.That is these TRADES cannot be taken to an Indian Court Of Law.
2.FTA`s wil shatter local Buesses.The same as FDI.
As regards the Industrial policy,attempts are bg made by the Globalists,like M M gh[member,club Of Rome], to COMPLETELY DEREGULATE,India Law,Manufacturing,Bankig etc,That is these THREE and many others, should be ABOVE laws.This s not possible.as CORRUPTION and crimes will soar..
PPP[Public Private partnership,is an example of this.This is above CAG and CVC,as of now.Via PPP the nation can be looted.The proposed huge expendituresfra Space are to be based on PPP.
PPPs have to be abolished with the Govt holg at least 51% shares so that CAG and CVC will be able to Audit and monitor,these entities. 
In this context it is worth , mentiog that the proposed National Manufactug Policy with its NMIZs s for DEREGULATION.That is mag the oligarchs above Indian Laws.
Hence NMIZ should NOT be allowed.
DEREGULATION should also be NOT allowed.
Deregulation s lake dg away with the Police,Military and the Courts.What will happen?there will be crimes and the Nation will bevaded. 

I reserve the rest to be sent to the Parliamentary panel.
It is worth nog that M M gh is shog FAVOURITISM to the Rotrhschilds[Shell India with the New LNG Policy][ and the Wall Street bankers, Divestment of many PSUs.
Wall Street Bankers are better kept at a distance,Unfortunately M M gh and Che`tambaram are their puppets.India is danger under M M gh,member,Club Of Rome. Please google for:-
1.Club Of 300
2.Club Of Rome."Divided the World into 10 Grops or Regions.The main aims of this Globalist Body,are, reported to be:-
i)Shattering Nations Economically
ii)DEPOPULATION
iii)Come out with UNTRUE notions like Peak Oil,Climate Change etc
   Founded by Rockefeller.
Visit this site:-

ramadeva2.wordpress.com

http://ramadeva2.wordpress.com/

http://ramadeva2.wordpress.com/about/

      

To be continued........

World Economic Forum Is unhappy With India's Subsidies!

 The WEF has come out with a report,in partnership with,Accenture, recently making unreasonable and selfish demands on India.
1.It claims that "costly and inefficient subsidies are damaging the economy".It demands that the energy market be made "more transparent" and "efficient" ,for encouraging foreign private Investments,in its report:
The New Energy Architecture:India".
COUNTER:-
             QEs and printing of notes are also SUBSIDIES.These export Inflation from the hosr nations around the World.These also have to be stopped.Stimuli with tax-exemptions are subsidies. 
            Subsidy should be ;provided where the standard of living is low.India is one such nation,where ths majority in rurla areas,use the one space for defecation.Even in cities near slums this is very common.
            The perks and pays in  India are also far less than in many Nations.       
            A country is NOT for the Businessmen alone.As per Indian culture,Businessmen are only a part of the Society,which constitutes others who may be rich,middle-class or poor.Charity is one of the basis of Indian culture.Subsidy for the poor cannot be removed for the sake of the profit of a few Western and Foreign businessmen.
                    As regards the energy markets being made "more transparent",it is the Western Businessmen who should be transparent.For example they are,reportedly, making huge amounts in Philippines citing the so-called "under-recoveries", in petroleum products marketing.Enron is an example of deregulation,which the Western Businessmen demand.The unregulated Derivatives are damaging the whole Global Economy.Yet the Wall Street bankers are reported to be misusing them in many ways,bankrupting Municipalities, manipulating the prices of Commodities resulting in high Inflation Globally,thus making the life of the POOR, Middle Class and the Fixed-income Groups hell,as these three are unable to make both ends meet,resulting starvation deaths due to high food prices....The Wall Street bankers are also reported to be against REGULATING the derivatives..What sort of transparent system us this?
2.Demands separation of Government from PSUs.
COUNTER:-
  THIS IS PRIVATIZATION,which means LOSS of Sovereignty.Hence is NOT acceptable.
    During the 2008 Global Financial crisis, the Indian PSU banks were the ones, which saved the nation while,many private Cos lost more than 25 Lakh Crores in Derivatives....
3.The report cites India's inability to meet its energy demands.
COUNTER:-
     Wheres' THE WATER?The power industries guzzle water!India will face Water shortage if she caves in to the UNREASONABLE and SELFISH demand of the WEC for "more energy".Why the USA has de-industrialized?Transferring pollution and Carbon Emission to India and the MNCs,raking in profits,using India's resources like Water,Power,raw-materials and Cheap labour...?
4. Honest upfront information is needed.
COUNTER:-
       This can be incorporated in agreements and is expected of both parties.
  Again Foreign MNCs have been untrustworthy as regards the so-called, "UNDER-RECOVERIES"...
Now demands on the WEF:-
1.Fractional Reserve Banking is not acceptable as the bankers become the masters by creating Money out of thin air
2.Unregulated Derivatives are not acceptable.These are a very great threat to the whole world on many counts.
3.DEREGULATION is not acceptable as it will make the MNCs above National and International laws...
4.QEs and STIMULI,which are SUBSIDIES, are not acceptable.
To be continued

      

Deregulation,OMCs,Under-recoveries and Favours To The MNCs and Private Players By MM Singh.

          In Cost-based pricing of petroleum fuels,which is the correct method,and which was followed till the 1990s,INDIVIDUAL ones' prices, cannot be raised.But, the LIES Under-recoveries, are a trick to raise the prices of individual fuels,thus cheating Indians. 
         MM Singh wants to "deregulate",especially,as regards the proposed,National Manufacturing Policy,prices Diesel and other Petroleum products,so that the MNCs and Private players can profit.An excerpt from the above link:-
"That really brings us to the crux of the matter as regards under recoveries. The under recoveries of the OMCs do not mean much as long as they are covered by the tax revenue of the oil sector only when private sector players are absent from the scenario. As soon as private sector players enter the picture, the under recoveries of OMCs become a proxy for the losses of private sector players. Since the private sector wants to enter the oil sector and earn windfalls, it highlights the under recoveries and policy analysts endeavor to show it as a burden and the mainstream media faithfully relays that concern. The way to remove the under recoveries, i.e., the way to ensure a positive and high rate of profit for private capital in the oil sector is to do away with cause of under recoveries: government control over petroleum product prices. Hence, the recommendations of various “experts” is to liberalize oil prices, and the GOI, by accepting and implementing that recommendation is working to ensure high and positive rates of profit for private capital in the oil sector.

Let us end with an example that you can chew. From Petroleum Minister Murli Deora’s answer to the Lok Sabha we know that the pre-tax price of petrol was about 23.44 rupees per liter in July 2009; if Reliance or Essar sold petrol in Delhi in July 2009, this is roughly the after-tax revenue it would make on each liter of petrol. What would be an estimate of the cost that Reliance or Essar would bear for a liter of petrol? In July 2009, the average international (FOB) price of crude oil was, as we have already noted, 64.618 USD per barrel, which translates into 19.87 rupees per liter.. Thus, if Reliance or Essar imported crude for their refineries, they would pay about 19.87 rupees for each liter.

What mark-up over processing and marketing cost would they want? The average international pre-tax price of gasoline in July 2009 was about 2.33 USD per gallon; since the international price of crude oil was 1.538 USD per gallon, this implies a mark-up over processing and marketing cost of 1.515 (= 2.33/1.538). Thus, for an international oil company, the price of petrol (gasoline) was set at about 152 per cent of the cost (of crude oil). It seems reasonable to assume that Indian capital would also like a similar, if not higher, mark-up over cost. Thus, in July 2009 Reliance or Essar or Shell would have liked to be able to set a pre-tax retail price that was 152 percent of the cost of crude oil. So, what pre-tax price of petrol in India would have been required to ensure an internationally competitive mark-up over processing and marketing cost? The answer is 30.20 rupees per liter (= 19.87 * 1.52).

Now things are clear. According to the Petroleum Minister, the pre-tax price of petrol in Delhi was only 23.44 rupees per liter in July 2009; that meant, using an international rate of return benchmark, a 6.75 rupees per liter less profit for a private sector player like Reliance. That, it is clear, was enough to create a hullabaloo about under recoveries and fiscal burden and the efficiency of the market and push the government to set up the Kirit Parikh Committee and decontrol petrol and diesel prices. Profit, you see, is what this whole fuss is about."

The only MNC,in petroleum products marketing,is Shell,a reported, Rothschild firm,which started operations in Hazira as soon as MM Singh was lucky to land in the post of India' top job,the prime Minister,in 2004.
  Now let us see,if India's OMCs are making profits or "losses".THIS link provides data regarding Crude oil refining in general.

Based on prices,from THIS link,the profit is about Rs 2001.37/= per barrel of crude refined,as on 20/2/2013..
     30% of the Crude is obtained at a cheaper price locally.This is ignored in the calculations for a higher margin of safety.
Price of Indian Crude basket for 19th February,2013,is, $ 113.65;At Rs 54.29 V Dollar,the price is = Rs 6170.06/=.
lpg = 225    [Only subsidized at Rs 438.5 per 14.2 Kg,considered]
petrol = 5233
fuel  oils = 677
diesel  = 1811
atf       =  941
[Others 27.6 Litres] ignored.
Revenue = Rs 8887/=

      As per THIS link crude oil alone amounts to 90% of the total production Cost.,which works out to be,Rs 6855.62, and the Profit is = Rs 2001.37/barrel of crude,refined.
     Even after,27.6 LITRES OR 16% OF THE CRUDE,BEING IGNORED!And 30% Crude is obtained from Indian Sources at cheaper prices[ONGC,Oil India,cairn].
       Hence,one finds that there is NO LOSS at all!The OMCs are profitable.
     Hence the claim of LOSSES by the OMCs is a LIE.
    The claim of under-recoveries,which is HYPOTHETICAL,and NOT the REAL LOSSES, is another LIE,as:-
i.Refining of Crude Oil and hence the production of petroleum products is DONE in India.
ii.Hence the pricing of the products SHOULD BE BASED ON TOTAL REFINING COST AND SHOULD BE IN RUPEES.
iii.But,the pricing is in, US Dollars using International Benchmark,.which is UNETHICAL.
iv.  Landed Cost is MISUSED, for pricing petroleum products which is also UNETHICAL.

     Minister of Petroleum And Natural gas,S.Jaipal Reddy's reply in Rajya Sabha on 2/8/2011,is used for the following tables:-

Loss of OMCs without Government Assistance & Upstream Discount

(Rs. Crore)

	2008-09	2009-10	2010-11
Combined Profit After Tax (PAT) of OMCs	4,261	13,060	10,531
Provision for Taxation	1,784	5,537	3,323
Profit before Tax	6,045	18,597	13,854
Less : Compensation received
Budgetary support	71,292	26,000	41,000
Upstream assistance	32,000	14,430	30,297
Total Compensation	1,03,292	40,430	71,297
Combined loss of OMCs without compensation	- 97,247	-21,833	-57,443

Diesel price as on 01.08.2011

(Rs. per litre)

Price paid to refinery @ Trade Parity	37.46
Inland Freight	+ 0.69
Marketing Cost and Margin	+ 1.39
Excise Duty (including cess etc.)	+ 2.06
Total Desired Price before VAT and Dealer Commission	= 41.60
Less: Under recovery	(-) 6.06
Price Charged to Customer - Depot Price	= 35.54
Dealer Commission	+ 0.91
VAT (Including VAT on dealer commission.) *	+ 4.84
Retail Selling Price	= 41.29

                  *VAT as per Delhi.  It ranges from 26 % to 9.08 % from State to State

As informed by the Indian Oil Corporation Limited the build up of the current retail selling price of Petrol at Delhi is as under:

Petrol price as on 01.08.2011

(Rs. per litre)

Price paid to refinery @ Trade Parity	35.39
Inland Freight	+ 0.65
Marketing Cost and Margin	+ 1.47
Excise Duty (including cess etc.)	+14.78
Total price after Excise duty	= 52.29
Less: Under-recovery absorbed by OMCs	(-) 00.71
Price Charged to Customer - Depot Price	= 51.58
Dealer Commission	+ 1.50
Value added Tax (Including VAT on dealer commission.) *	+ 10.62
Retail Selling Price * *	= 63.70

*    VAT as per Delhi.  It varies from 33 %  to 15 % from State to State

** Petrol Price is decontrolled with effect from 26^th June, 2010. The price break up is as per IOC.
     
     Ethanol Blending also increases the profit margins,[about Rs 1410 Crores per annum], of the OMCs in the case of petrol.

MORE on Ethanol Blending.The following Table is from the link above.

  The OMCs have to be Audited by The CAG.
HERE is a link regarding a PIL against the so-called "under-recoveries".The full materail in this link:-
"

Under recovery of oil cos challenged at Kerala high court

Mahir Haneef, TNN Oct 6, 2011, 01.23PM IST

KOCHI: The under recovery concept, which is so often cited by petroleum companies in the public domain as the reason for hiking fuel prices in the country, is under challenge at the Kerala high court through a petition filed by former ember of Parliament PC Thomas.

While political organizations here are calling for reducing taxes, PC Thomas is attacking the concept of under recovery itself, challenging that levying rates by comparing with international prices while refining is done within the country amounts to duping the public.

Prices of petroleum products are fixed by adopting Import Parity Price. The logic behind the said calculation is that had there not been any oil refining companies in the country, all petroleum products should have been imported from foreign countries. Therefore, the citizens are liable to pay for petroleum products at the import rate.

PC Thomas, who appeared at the High Court in person challenging the oil price policy, states that the central government is conveniently concealing the fact that oil production in the country is 30 per cent higher than the actual need and 25 per cent of the actual need of crude oil is extracted domestically.

Moreover, India doesn't import petroleum products but only crude oil, which is refined in refineries domestically at a much lower rate than the global rate. However, the oil companies are charging Import Parity Price for petroleum products, not of crude oil, which is unethical and is an irrational pricing method, PC Thomas contends.

The former MP is calling for a roll back from deregulation of petrol price and impose control over the same so that oil companies cannot increase the price arbitrarily. He is also seeking a court order to roll back from charging International Parity Price for petroleum products."

URGENT RECOMMENDATION TO THE GOI:-

1.Oil PSUs are making huge profits,namely,Rs 2001.37/bbl Crude oil,refined.As many of them are OLD, Depreciation will be very much less and almost NIL.
      30% of the Crude,is obtained by the OMCs at subsidized rates from Indian Oil Cos[ONGC,Oil India,Cairn].

2.Ethanol Blending with petrol increases the profit of the OMCs by Rs 1410 CRORES per annum.

3.CAG should Audit the OMCs.

4.A regulator is required and DEREGULATION and price raises have to be rolled back.

          Deregulation is like,doing away with the Police and Judiciary,and appointing THE THIEF as the Judge, claiming that Crime rates will be down!Enron is an example of deregulation.

i.Refining of Crude Oil and hence the production of petroleum products is DONE in India.

ii.Hence the pricing of the products SHOULD BE BASED ON TOTAL REFINING COST AND SHOULD BE IN RUPEES.

iii.But,the pricing is in, US Dollars using International Benchmark,.which is UNETHICAL.

iv.  Landed Cost is MISUSED, for pricing petroleum products which is also UNETHICAL.

5,Reportedly,the Petroleum Sector contributes immensely to the National Exchequer and the State Coffers.
6.Private players like Mittal have joined HPCL and many others are doing the same.How come,if the Refining is a losing business?
        This further confirms that the Petroleum Sector lays Golden Eggs..........contrary to the claims of the OMCs and the GOI.
7.Under-recovery started ONLY in 2004 and is reported to be mainly,to enable, THE MNC and private players to make profits. 

8.The FAIR PRICE of Crude oil ,is less by about $23.Saudi Oil Minister,Naimi,has claimed in May,2012,that the FAIR PRICE of Crude is ONLY $100 per barrel!He blamed speculation for the high price.Hence Speculation by the Wall Street Bankers have to be stopped.GOI will have to take this up with WTO,or other appropriate International body.The Global Crude Oil Scam,is worth $ 2.5 Trillion,in 2009,as per THIS link.
       Derivatives should be BANNED,for fairness in cost of Commodities etc.
9.When Crude prices increase,IMPORTS have to be decreased.This will make demand less and make the price fall.It does  not make good business sense to buy Crude,even if the price is too high.

10.Various methods of buying Crude oil should be tried and the best chosen.There are reports that private players buy at a cheaper rate,by a different way of striking Contracts for Crude.
11.Oil producers like ONGC,OIL etc, have to be merged with Crude refiners,like IOCL,BPCL etc.
12.Luxury four-wheelers have to be taxed heavily.Banks should NOT offer Loans for purchase of vehicles.These will reduce,Petrol and Diesel consumption.
13.DO NOT ALLOW PPP,as malpractices are possible since CAG will not be able to audit them,and they will not come under CVC too.
14.If the OMCs are not impressed by these calculations and arguments,they can follow the following SENSIBLE,business practice, to stop "their LOSSES".
i.Calculate the "break-even" price of Crude.
ii.When Brent crude price reaches 60% of this value,start reducing imports.Adjust imports of Crude so that THE NATION does NOT LOSE!

To be continued......