Sharma invites investment from Kenya in India's textiles sector .

Union Commerce, Industry & Textiles Minister Anand Sharma has invited investment from Kenya in India's textiles sector, in which equity participation upto 100 per cent through the automatic route is permitted.
At a meeting with Kenyan Trade Minister Chirauli Mwakwere here yesterday, Sharma also raised the issue of the high import tariffs (MFN duty) imposed by Kenya on man-made fibre textile items from India such as yarn and fabris. The duties are upto 25 per cent on yarn and fabris and upto 50 per cnt in the case of made-ups. In addition, Kenya also imposes 16 per cent value added tax (VAT) on imports.
 
Sharma called for greater cooperation among the trade associations of both countries, saying this would facilitate growth in textile trade.
 
He said Kenyan departmental stories, importers and retail chains were welcome to participate in India's fairs and exhibitions.
 
Sharma said that, in 2010, Indian textiles and clothing (T&C) exports to Kenya were $ 100 million against $ 77 million in 2009.
 
Manmade Staple Fibre (MMSF), Manmade Filaments (MMF), apparel articles and textile article nesoi / clothing are the major textiles export items to Kenya.
 
As per latest available statistics, during the first seven months of calendar year 2011, there has been a decline in the exports of T&C items to Kenya by 13.81% moving to $ 50 million as against $ 58 million in the corresponding period of 2010.

Imports from Kenya during the calendar year 2010 were $ 3.4 million and the majority of it was on account of the Wool and Veg Text Fib nesoi / paper yarns.
 
“Kenya is an attractive gateway to the emerging markets of the East African Community as well as to some of your other neighbours and to parts of Central Africa. Indian businesses have been investing in Kenya, in several sectors such as telecommunications, petrochemicals and power," Sharma said.
 
According to the Department of Economic Affairs, Indian companies have invested $ 136.34 million in Kenya between April 2005 and February 2012.
 
Foreign direct investment (FDI) inflows from Kenya to India were $ 18.8 million during the period from April 2000 to December 2011.
 
Sharma expressed happiness over the fact that, in November 2010, the Exim Bank of India had signed an agreement with the Government of Kenya for a $ 61.6 million concessional Line of Credit extended by Government of India for power transmission lines and substations.
 
India is presently implementing the Pan-African e-Network project in Kenya. This will link universities and hospitals in Kenya and India through tele-education and tele-medicine services. VVIP connectivity is also envisaged. The project is running successfully in countries across Africa.
 
An India-Kenya Double Taxation Avoidance Agreement (DTAA) was signed in 1989. Negotiations for concluding a Bilateral Investment Promotion Agreement (BIPA) and to review the DTAA have been under consideration of the two governments for some time.

Source : netindian.in