Manmohan lets the money do the talking
28 May 2012
India extends $ 500-mILLION line of credit to Myanmar
manash ghosh
NAY PYI TAW, 28 MAY: On the second day of Prime Minister Manmohan Singh's visit to Myanmar both India and Myanmar today in an unprecedented move signed a slew of agreements and MOUs covering almost all aspects of their bilateral ties which promise to bring these two neighbouring countries closer than ever before and to not allow their territories to be used by terrorists. But one of the most significant MOUs concerned the granting of $500 million line of credit by India to Myanmar which this country will utilise for upgrading its agriculture, irrigation, rail transportation and electric power system. After the signing ceremony Prime Minister Manmohan Singh said the MOU and agreements will usher in a new era of cooperation for mutual development. He said India's economic growth was there to help Myanmar to march further on its path of progress.. The captains of the Indian industry like Mr Sunil Mittal and Mr Navin Jindal, who are part of the Indian delegation, called the signing of the MOUs a historic event. Both said that this was the right time for the Indian industry to come and invest in Myanmar in a big way. Indian industry should not miss this opportunity to make its contribution to Myanmar's economic and all round growth possible."For Indian investment in Myanmar this is the most opportune time. It's now or never", they said.
But a more significant MOU signed by both sides concerned the socio-economic development of India-Myanmar border areas. It proposes to bring this geographically strategic isolated area of India's North-east into sharp development focus and significantly improve its connectivity. The most ambitious project to be undertaken jointly by the two countries along with Thailand involves the construction of a road from Moreh to Mae Sot in Thailand via Myanmar. .A land customs station will be opened at Zorinpui in Mizoram to promote border trade between Mizoram and Myanmar. The border trade points on the Indian side will have banking facilities. Border haats like those on the India-Bangladesh border too will be set up along North-east's border with Myanmar. A host of other projects will be taken up on both sides of the India-Myanmar border which will upgrade roads and highways, construct schools and health centres, bridges and promote agriculture related training activities. India has offered assistance for the production of large cardamom in the Naga Self Administered zone in the Naga inhabited areas in Myanmar bordering India's North-east. Both sides have agreed to ensure border security through cooperation and exchanging intelligence inputs. India has decided to help Myanmar in higher education and has offered scholarships and fellowships to Myamarese researchers.
The agreements signed by both the countries have attracted snide comments from Beijing.
Indian firms start moving in
NAY PYI TAW, 28 MAY: Private Indian companies have started moving in but the volume of their investment is negligible compared even to those of Thailand and Singapore. India is the fourth largest trade partner of Myanmar (second largest export destination and seventh largest import source) next to Thailand, China and Singapore though it has the potential to be the first. As one Myanmar official put it aptly " We are like long forgotten friends of India which suddenly has discovered that we still exist." The official said it would have made a lot of sense if the Indian Prime Minister had brought with him here some of the North-eastern chief ministers which would have made the outcome of his visit more meaningful and spectacular. After all he had made this unique experiment during his visit to Dhaka last year. A repeat of that would have contributed significantly to the visit's substance and outcome. Because a large part of the last two days’ talks between the leaders of the two countries centred around the improvement of infrastructure,
connectivity and trade between the North-eastern states and the adjoining provinces of Myanmar. mg
Finance Ministry, Bank Indonesia Not Dismayed by Recent Economic Slump - thejakartaglobe.com
The Finance Ministry and Bank Indonesia are optimistic that the recent slump in the financial markets will be just temporary, given that the country’s economy is in solid condition.
Investors scared off by events in Indonesia and abroad on Friday led the country’s benchmark stock index to its biggest single-day fall in almost seven months.
The rupiah also weakened overseas as investors reduced their holdings in Indonesian assets amid concern that the government’s regulatory framework would deter foreign investment. There were also fears that Greece’s withdrawal from the euro zone would siphon money from emerging markets.
Finance Minister Agus Martowardojo said he was optimistic that the nation’s economic growth was to remain strong, referring to the recent report issued by the Organization for Economic Cooperation and Development.
He said robust investment and a pick up in investment would be the key drivers in the domestic economy.
The Paris-based organization said in a report on May 22 that Indonesia’s economy “has continued to grow at a rapid pace, despite signs of slowing elsewhere in Asia and its impact on regional trade.”
The OECD predicted Indonesia’s economy will expand 5.8 percent this year and 6 percent next.
Hartadi Sarwono, a deputy governor at the central bank, acknowledged there had been a reallocation of assets from emerging market assets into safe-haven assets.
He also denied talk that Bank Indonesia would impose tight controls in foreign exchange, replacing the nation’s current free-floating foreign exchange system, which ensures the free movement of capital in and out of the country.
Investor Daily
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