Washington, July 13
India is ready for talks with the US on a bilateral investment treaty (BIT), which would reinvigorate trade ties between the two countries, Commerce and Industry Minister Anand Sharma has said.

“We have said that yes, we are ready for it (BIT). We are in favour of a bilateral investment agreement," Sharma said at the conclusion of the Washington-leg of his US tour yesterday. However, no date has yet been set in this regard, he said.

During his visit, Sharma had met the US Trade Representatives Mike Froman; delivered a keynote address to the US India Business Council and attended a meeting of the US India CEOs' Forum. “We have given our acceptance,” he said in response to a question during the press interaction.

“We would definitely be in favour of enhancing our economic partnership. We clearly recognise that the economic engagement in both trade and investment, though robust, is well below the potential, given the opportunities that a growing economy like India offers and the opportunities that exists in the US economy,” he said. He said the target of 500 billion dollar in bilateral trade by 2020 is doable.

“If we make real effort in five years, we can definitely by 2020 reach there. As of now trade and services put together is about $106 billion and fairly balanced and it has the potential to multiply at least four fold,” the Commerce Minister said.

“We have a road map and we have a structured format of our engagement,” he said, adding that this visit of his, along with that of FM P Chidambaram and Deputy Commissioner of the Planning Commission Montek Singh Ahluwalia, has reinvigorated the dialogue between the two countries. — PTI

‘Do more to attract FDI in key areas’

There is more concern among US businesses now about investing in India than was a few years ago though the India was pursuing reforms, US leaders have said. The US Trade Representatives, Mike Froman; and David Cote, chairman and CEO of Honeywell, said India needs to address the concerns of the American business on a host of policy issues so as to attract FDI in key areas.

Washington, July 13
US Treasury Secretary Jacob Lew has welcomed Finance Minister P Chidambaram’s efforts to address concerns about investment climate in India and invited him for the US-India Economic and Financial Partnership meeting here this fall.

Chidambaram, who ended his four-day US visit yesterday, held detailed meetings with Lew and the US Trade Representative Mike Froman on Friday.

The Indian Minister also expressed concern over the proposed immigration law that would affect the interest of Indian software companies. “Secretary Lew welcomed Finance Minister Chidambaram’s efforts to engage with US investors in Washington this week, and he encouraged the Indian government to continue to implement economic reforms that will further deepen our bilateral trade and investment relationship,” the Department of Treasury said.

Lew consulted with Chidambaram on economic conditions in India and the US, and on policy priorities for the July 19-20 meeting of G-20 finance ministers and central bank governors.

Froman on his part welcomed Chidambaram's efforts to address concerns about the investment climate in India. “Froman underscored the importance of avoiding policies that disadvantage foreign goods and services, and reiterated the US’welcoming of news that India’s preferential market access (PMA) policy is to be reviewed and modified,” the readout said. — PTI

Q: Earlier you had suggested that “The rights of a Karta are large and wide. Any member of an HUF does not have the right to challenge the actions of the Karta except on the grounds of a fraud. A member of an HUF cannot ask for family accounts at any time, even at the time of partition. No member can demand for the resignation of the Karta. However, a male member can ask for dissolution of the HUF.” Do these facts and law stand good even today?
— Shivlal

There are slight changes in the rules. The Hindu Succession Act, 1956, has been amended in 2005. Accordingly, with effect from September 6, 2005, a daughter of a coparcener shall, by birth become a coparcener in the HUF in her own right in the same manner as the son. She has the same rights in the coparcenary property as she would have had if she had been a son. Such a right is available only to daughters and not to other members of the family such as mothers, wives and daughter-in-laws. This means now, even a daughter can demand for a partition. The rest of our previous observations remain unchanged.

Q: My sons are living abroad. The elder son is an NRI (Indian Citizen-NRI) and is working in an East African country. He has some savings from his salary, which he gets in foreign currency. He wants to buy a property in London. Can he do so? Does he require permission from the RBI? Is there any formality or permission required to be obtained from the Indian authorities? The younger one is a citizen of Australia. How can we give him our property situated in India? (by way of a gift or will).
— Parkash Singh Baweja

We presume you are a ‘resident’ in India.

1. India has no restriction on an NRI or a PIO investing his forex savings abroad. Whether he can do so or not would depend upon the laws of East Africa and England.

2. There is no restriction on your son receiving a gift from his close relatives either through a gift deed when you are alive or through your will.

New Delhi, July 13
In the first of a series of clearances of electronic goods within the country, the government on Friday approved three projects worth Rs 960 crore in the electronics system design and manufacturing sector under the Modified Special Incentive Package Scheme (MSIPS).

Among the beneficiaries of the scheme, which provides sops to the electronic goods manufacturers, are Samsung India Electronics, Bosch Automotive Electronics India and Sahasra Electronics.

Handing over the clearances for the setting up of the manufacturing facilities, Minister for Communications & IT and Law Kapil Sibal said, “This is the first tranche of investment where we have moved forward with around Rs 1,000 crore. We have firm applications of Rs 4,600 crore. As we move forward, in a month or so we will clear that because now we have set up parameters for clearance as well.”

Under the clearances given, Samsung would be investing Rs 406 crore for manufacturing smartphones at Noida. Bosch would be investing Rs 544 crore for manufacturing electronic automative devices and Sahasra Electronics will invest Rs 11.1 crore for manufacturing LED products. — TNS

BRIEFLY

NEW DELHI
Spending power of high income group on the rise:The spending power of a majority of people in the high-income group continues to rise amid the economic slowdown, with more than a third of their income set aside for luxury brands, an industry body said in a survey. “Despite the global economic slowdown, the size of high-income group consumers continues to grow and they spend over 40 per cent of their monthly income on luxury items, whereas middle-income group consumers have come under heavy pressure,” Assocham said. — PTI

NEW DELHI
No decision yet on Air India’s fleet of Dreamliners:Aviation regulator DGCA today said it was keeping a close watch on the probe into the recent fire incident and “mechanical” trouble in two Dreamliners at the London Heathrow airport and no decision has been taken on Air India’s fleet of these planes. “We are keeping a close watch in the investigations (at Heathrow). We will take a view (on AI's fleet) only after we receive reports of the inquiry and know the causes behind these incidents,” DGCA chief Arun Mishra said. — PTI