	india steps up counter deals to cut  gap india is searching for non communist counter partners to help it cut its  deficit and conserve foreign exchange wheat tobacco tea coffee jute engineering and electronic goods as well as minerals including iron ore are all on offer in return for crude oil petroleum products chemicals steel and machinery  sources told reuters most of the impetus behind counter which began in comes from two state trading firms the state trading corp stc and the minerals and metals trading corp mmtc the two state trading corporations are free to use their buying power in respect to bulk commodities to promote indian exports a commerce ministry spokeswoman said adding that private firms are excluded from countertrading one  source said india has targetted countries that depend on an indian domestic market recently opened to foreign imports however counter deals still make up only a small part of india s total trading and are likely to account for less than eight pct of the estimated billion dlrs in  during the nine months ended december the sources said counter accounted for just five pct of india s billion dlrs in  during fiscal ended march against almost nothing in official figures show however the figures exclude exchanges with the eastern bloc paid in non convertible indian rupees the sources said total  with the soviet union involving swaps of agricultural produce and textiles for soviet arms and crude oil is estimated at billion dlrs in fiscal against three billion in indian counter which is being promoted mainly to help narrow the country s large  deficit is still insignificant compared with agreements reached by indonesia venezuela and brazil the  sources said the  deficit which hit an estimated record billion dlrs in is expected to decline to billion in the current fiscal year but the push to include non communist countries in counter is also due to other factors including the slow growth of foreign reserves a tight debt repayment schedule shrinking aid and  protectionism businessmen said one source said india is showing more dynamism in promoting counter deals than in the past when the deals were made discreetly because they break gatt rules as a member of the general agreement on tariffs and  gatt india cannot officially support bartering the mmtc s recent counter deals include iron ore exports to yugoslavia for steel structures and rails mmtc s recent global tenders now include a clause that preference will be given to parties who accept payment in kind for goods and services sold to india a  official said adding that the policy remains flexible we also take into account other factors such as prices at which the goods and services are offered to india the  official said early this year the commerce ministry quietly told foreign companies interested in selling aircraft ships drilling rigs and railway equipment to india that they stood a better chance if they bought indian goods or services in return the  sources said illustrating the point the official said a south korean firm recently agreed to sell a drilling platform worth mln dlrs to the state run oil and natural gas commission reuter 
