ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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A Model, Indeed

A Model, Indeed! Nachiketa RELATIVELY low prices of raw cotton together with its comfortable supply position have had a favourable impact on exports of cotton textiles in the current year. In the first eight months of the calender year, exports of cotton textiles are appreciably higher by about 30 per cent at Rs 87.70 crores as against Rs 67.35 crores in the corresponding period of 1971. If we consider the fiscal year, the rise in exports in the first five months are even more impressive

Export Callisthenics

August 19, 1972 Transport buses and employing outside labour. Three days before Independence Day he launched the strike of 90,000 employees of the Municipal Corporation. Finally, there followed the indefinite strike of drivers and conductors and other traffic staff of BEST, paralysing the city's bus transport system. It is a measure as much of the discontent among the Corporation employees as of Fernandas' skilful handling of the situation that two unions led by Congressmen were also persuaded to join in the strike. All opposition parties and their trade union organisations have lent support to the strike.

Insuring Investments Abroad

Insuring Investments Abroad Nachiketa THE government is reported to be giving final touches to a scheme for insuring Indian investments in foreign countries in the form of joint ventures. Such an investment insurance scheme would mainly underwrite various types of political risks that investors abroad have to bear. This is expected to encourage Indian industrialists to promote joint ventures, especially in the developing countries. The government's insistence on Indian capital participation exclusively in the form of plant and equipment produced in the country serves the purpose of encouraging exports of capital goods and creating a potential demand for Indian components, parts and raw materials from these joint ventures, The country has gained sufficient expertise and possesses a fair amount of knowhow in respect of a number of industries that are suitable to be started in many developing countries. The main factors that inhibit the flow of investment to these countries are political uncertainty, unstable exchange rates, risks of nationalisation or appropriation without adequate compensation and dangers of internal strife or war.

Poor, Poorer, Poorest

will be more successful with radical land reform or taxation of the rural rich. At the Chief Ministers' conference, like at similar other occasions, figures of the cost of production in agriculture were bandied about freely. The APC had said in its report that "available data, though in need of enlargement in respect of its coverage, suggest that even after the moderate reduction [suggested by the commission], the procurement price of wheat will be comfortably above its cost of production. And this notwithstanding the imposts proposed in the Union budget for 1972- 73". The APC did not go into details of the cost of production advisedly, because of the wide variations as between regions as well as on account of othei conditions. But the observations it has made in its report are based on detailed studies. The farm management studies data as well as the cost data available with the Commission suggest that in no case would the maximum cost of production of wheat exceed Rs 50 to Rs 55 per quintal and that under favourable conditions it would be as low as Rs 38 per quintal. As against this, the procurement price is Rs 76 per quintal. The APC is convinced that the figure of Rs 80 per quintal claimed by the Punjab Chief Minister as the cost of production in Punjab has no basis whatsoever.

India-Bangladesh Trade Treaty

before June 30.
Himachal Pradesh has altogether different problems because of its hilly terrain and the peculiar features of its economy. Even so, it has fallen in line with the other states in expressing its determination to enforce the ceiling on property. Outlining the new Congress ministry's policy in his address to the Assembly on March 28, the Governor announced that a Land Reform Bill would be introduced very soon The Himachal Government has however, expressed concern over the manner in which Wealth Tax was being assessed on agricultural and horticultural lands in the state. It intends to take up the matter with the Centre. How the Government's loudly professed socialistic objectives are to be reconciled with protests against Wealth Tax assessments is not clear. Presumably, the vested interests in Himachal's apples and potatoes (major revenue- earners) still dominate the political scene.

Letting Up on Foreign Investment

eve of the midterm polls last year to hold CPI(M) primarily responsible for the climate of violence in West Bengal have perceptibly shifted their positions Despite the suppression and distortions of the news by the press and radio these sections in the urban areas have now come to regard Con- gress(R) as the more aggressive party.

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