Trade between Hong Kong and India has continued to expand as the effects of India's economic reforms and liberalisation policies take hold. Hong Kong's total exports to India rose 65 per cent from January to November last year to US$730 million, following a 36 per cent increase to US$517 million during 1994. All last year's figures are based on 11 months of trading from January to November. Domestic exports for 1995 were worth $49 million and re-exports $681 million. According to Hong Kong Trade Development Council figures, re-exports, about 40 per cent of which were from China, increased 67 per cent in 1995 on the back of 37 per cent growth the previous year. Domestic exports rose by 38 per cent last year and 22 per cent the previous year. Major domestic exports included textiles, watches and clocks, semi-conductors and machinery. Dominant re-exports included precious stones, semi-conductors, telecommunications equipment and pharmaceuticals. By contrast, India exported $1.72 billion worth of goods to Hong Kong, an increase of 28 per cent. Re-exports accounted for $709 million, up 19 per cent from the previous year. Total bilateral trade stood at about $2.45 billion, compared with $1.96 billion for 1994. India's import-export policies from 1992 have set a positive pace in terms of eliminating trade restrictions and simplifying import licence applications. During the 1995-96 financial year, the maximum rate for import duties was reduced from 65 to 50 per cent, with the government committed to further cuts. Import duties are expected to be gradually reduced to about 25 per cent by 1998-99. A privatisation plan to lessen the government's holding in major state companies to 51 per cent has also been introduced. Industrial policy reforms have resulted in the equity limit for foreign companies in some industries being raised from 40 to 51 per cent. Restrictions on foreign company entry into oil refining and power generation have been removed and licence controls on 'luxury' industries such as cars, air-conditioners and refrigerators have been relaxed. India's Union Industry Minister, Murasoli Maran, said the government's focus was on transparency and accountability in its policies and actions. He said recently the government would review industries which were still subject to industrial licensing. Industries exclusively reserved for the public sector would be examined with a view to opening them to private sector participation. Mr Maran said proposals involving a higher level of majority foreign investment would also be considered. India's total exports rose to $26.5 billion in 1994-95 and have increased by 24 per cent in the first three quarters of 1995-96 to $22.8 billion on a year-on-year basis. A diversification of exports from India has lifted results.