The US secretary of defence, Robert Gates, arrives in the Indian capital, New Delhi, next week to promote a $10bn jet fighter contract, underlining the country's emergence as one of the world's biggest military markets. To update its Soviet-era arsenal India says it will need to spend $45bn in the next five years, and it has been courted by western states that are barred by arms embargoes from selling to China, the other expanding Asian military power.

Trade ministers of India and China will meet in the first week of April in Beijing to consider the recommendations of the Joint Task Force on the India-China Free Trade Agreement. The ministers would discuss in what way the recommendations of the Task Force have to be worked upon and how to take the process forward, said Dinesh Sharma, Commerce Ministry, Joint Secretary. The Indian industry has been opposing an FTA with China, until it gets the market economy status by implementing transparent pricing mechanisms.

With a special focus on specific sectors in the economy that have been affected the most by Rupee appreciation and in order to give a relief to the exporter thus worried by a strong Rupee that has eroded his competitiveness, Indian Government this July announced a Rs 1,400-crore (350 Million USD approx.) package that included cheaper bank credit, an increased rate of duty drawbacks and faster reimbursement claims.