Você está na página 1de 43

Role of FICCI in Indian Export

Introduction to Chambers Of Commerce

The chambers of commerce and industry are established on regional bases.


They assist export promotion in a numbers of ways. Its membership is open
to all members of trade and industry. They provide suggestion and
recommendation to the government on various issues concerning trade and
industry including export marketing. The government while framing import
and export policies does accept their suggestion. They help the exporters in
issuing the certificate of origin and taking up specific cases of exporters to
the government. The chambers of commerce also provide information and it
provides a forum to their members to discuss the problems arising out of
policy maters. They also organized workshops, seminars, and short training
coerces in order to guide their members on export aspects. They do send
trade delegations abroad and invite trade delegations from abroad.

Introduction to FICCI
1
Role of FICCI in Indian Export

Federation of Indian chambers of commerce and Industry (FICCI) was set up


in 1927, at the instance of Mahatma Gandhi, FICCI has grown over the years
to represent, directly or indirectly, over 250,000 business enterprises
employing around 20 million people. In the vanguard nation-building,
moving ahead to integrate Indian economy with global mainstream, FICCI
has evolved as a true partner in progress with the government. Within the
country, FICCI has been playing a pivotal role in the formulation of major
economic policies. Working through expert committees for almost all areas
of economy, FICCI has encourage and adopted strategies for grater private
sector participation, free market, enhanced global trade and foreign direct
investment.

Acting as a change agent, FICCI has contributed significantly to the


development of the economy. Internationally, FICCI operates through 74
joint business councils (JBCs) with many countries and several other
commercial alliances and MOU partners. Another vehicle for the
international division is the destination India events organized jointly with
the government of India. With international offices in UK, USA, Germany,
China, Malaysia, Thailand & Singapore, several offices in India and the
strong network of 500 chambers and industry associations, FICCI truly
represents the Indian industry as its interlocutor with the international
business community. FICCI has pioneered bilateral interaction between
political and business leaders, through the parliamentary forums with the
USA, UK, Germany; initiating the communication process essential for
creating closer business relationship.

2
Role of FICCI in Indian Export

FICCI’s Agenda for Managing the Challenging Economic


Scenario

Background:
1. Growth so far has been primarily private investment led.

2. The fundamental Indian Economy remains structurally strong and the


current International Banking crisis has left the Indian Banking sector
relatively untouched.

3. However the many months of tight monetary policy and its consequent
effect on drying up domestic liquidity had forced Indian companies to look
externally for financing. This forced and increased International exposure
has seriously compromised the Indian industry because of turmoil in the
International Financial Markets and the rapid devaluation of the Indian
Rupee. In addition the risk aversion that has suddenly crept into the
Domestic banking sector on account of the International Banking crisis have
created a situation of deep concern and threat for the real economy and all
the players in it.

4. While the steps of Liquidity infusion, Rate cuts and opening up ECBs are
all welcome steps and aimed at restoring liquidity from markets - and had
been suggested by FICCI a few months ago (anticipating a slowdown), these
are not enough in the current circumstances and global scenario. As a
matter of fact, the ECB opening up is a case of bolting the stable door after
the horse has left.

5. The reasons to take deeper and more meaningful measures is simple, India
is in the middle of a significant investment and expansion cycle – where
businesses need access to capital (Equity and credit). Disruption of this
expansion cycle mid-stream will have serious consequences to the real
economy – Serious, deep and systemic – which will come back and haunt us
a few years down the road.

3
Role of FICCI in Indian Export

6. Do not focus on stock market alone; focus on “Real Economy”.


So what are the steps required?
The steps are broadly
A) Financial sector oriented –
i. Liquidity, rate cuts and Risk aversion, sectoral stabilization fund
a. FICCI believes that liquidity that has been infused into the market
following the recent CRR cuts would be quickly absorbed to meet the
outstanding commitments. Given this scenario it is important to inject a
fresh dose of liquidity much ahead in time. Central bank must further bring
down the CRR from the present 6.5% to 4.5% - the same level as was seen in
the year 2004.
b. Cut repo rate by another 50 basis points immediately and bring it
down to 5% in the near term. This would send a strong signal to the banks to
revise their PLR downwards.
c. FICCI proposes sectoral stabilization funds for sectors where risk
aversion has suddenly shot up and liquidity is not forth coming.

ii. Risk Aversion and Credit flows to small and medium sector as well as
large projects, (Issues of crowding out by the Public sector and Subsidy bills,
a. Banks must completely deliver on all sanctioned loan limits to
corporate.
b. Crowding out of Private sector from credit markets should not
happen with liquidity being used for fertilizer and petroleum subsidies.

iii. Recapitalize Banks – give them the Rs.50,000 crore on agricultural loans
immediately.

Iv. Protecting against systemic defaults by NBFCs by converting them to


Banks and bringing them under regulation,

v. Bring the focus back on FDI and attract sovereign funds (SWFs).
a. Government to lift foreign investment restrictions and review caps
in sectors like insurance, telecom, multi-product retail and aviation

vi. Boost NRI deposits

4
Role of FICCI in Indian Export

a. Deposit rate on FCNR and NRE to be increased by 50 bas is points.


Further, rules related to deposit period may also be relaxed to boost NRI
transfers.
b) Real Economy oriented
i. Reduce Railway Freight Rates by changing classification.
ii. Exporters
a. Refunds from excise department to be made in 7 days instead of
current 90 days
b. Credit lines for good credit worthy exporting companies to be made
available since LCs and international credit lines are not being accepted.
iii. Domestic
a. Existing sanctioned project loans should be disbursed expeditiously.
b. Public investment needs to be accelerated to pump prime the
economy through increased infrastructure projects.
c. Sectoral stabilization fund where specific risk aversion is high and
liquidity is not forthcoming.
d. Consumer demand to be stimulated (Housing and consumer durable
financing to restart).

FICCIs view is that this agenda must be implemented systematically


and completely to prevent the threats to the Economy that are real. The focus
on the
financial sector is important but not enough. The downstream Real sector
and their issues for both the Large and small/medium AND Exporters (whose
cause FICCI has been advocating for long) have to be addressed to ensure
that there
is no damage to the real economy.

5
Role of FICCI in Indian Export

Role/Functions of FICCI

The main role of Chambers of Commerce is to project good image of Indian


products.

Collection of Information
It collects valuable information on overseas imports, import
regulations, about competitors, market potential and other
developments in foreign trade.

Supplying Information
It provide information on latest developments in the field of export
trade. It may relate to various aspects of foreign trade. Such
information is vital to the exporters to promote their sales abroad.

Organising Seminars
It organises seminars, workshops, discussions, meetings, conferences
on various aspects of foreign trade. Exporters are invited to such
seminars and workshops.

Trade Fairs & Exhibitions


It may also assist the concerned authorities in organizing trade fairs
and exhibitions in India and abroad. It may also assist the exporters
to take part in such trade fairs and exhibitions.

Advising the Government


It apprises or advises the government authorities on current export
problems and suggest measures for export growth. It also advises the
government in framing proper export import policies from time to
time. It may recommend certain modifications in the existing
government policies and programmes.

6
Role of FICCI in Indian Export

Invite Trade Delegation


It may invite trade delegation from abroad, both at private level and
at government level. Such trade delegations are very important to
promote export trade of India. Foreign delegations visit India and sign
contracts with Indian exporters.

Send Delegations Abroad


It may undertake the responsibility of sending trade delegations
abroad comprising Indian businessman. Indian parties may visit
abroad and enter into contracts with overseas buyers. Thus, foreign
trade of India can be expanded.

Professional Advice
It may offer professional advice to exporters in areas such as
technology upgradation , quality and design improvement, standards
and specifications, product development, innovation, etc. Such advice
goes a long way to improve product and organisational efficiency of
the exporters.

Exploration of Overseas Markets


It may assist the exporter in exploration of overseas markets and
identify items having export potential. It may also assist the exporter
to open offices or branches abroad. It may guide the exporter in
setting up of joint ventures abroad.

Developing Export consciousness


This organization makes all possible efforts to develop export
consciousness in our country. This is because there is a great need for
exports for a country like ours so as to earn foreign exchange.

Other Functions
It may fix minimum floor price or may advise the government in such
fixation of floor price.

7
Role of FICCI in Indian Export

Sectors

Agriculture Infrastructure
Banking & Financial Insurance & Pensions
Institutions Luxury Goods
Biotechnology Logistics
Brand Protection Manufacturing
Capital Market Non-conventional Energy
Chemicals Pharmaceuticals
Corporate Laws & GovernancePower
Defence Real Estate
E-Business Resource Conservation &
Education Management Group
Electronics Hardware Retail
Entertainment Rural Development
Environment Small and Medium Enterprises
Food Processing (SME)
Foreign Trade Sports
Gems and Jewellery Taxation
Health Telecom
HRD Tourism
Hydrocarbons Urban Development
Information Technology Water Resources

Federation of Indian Chambers of Commerce


and Industry (FICCI) is an association of
business organizations in India. FICCI is one of
the main organizations to fund and support

8
Role of FICCI in Indian Export

many governmental and non-governmental


educational institutes.

Services offered by FICCI:

 Business Information Services Network


(BISNET)
 Energy Conservation
 FICCI Arbitration and Conciliation Tribunal
(FACT)
 FICCI Ladies Organization
 FICCI'S National Initiative Against Piracy &
Counterfeiting
 FICCI Trade Facilitation Forum (FTFF)
 FICCI Quality Forum
 Foundation of Research, Training and
Education in Insurance (FORTE)
 Institute of Intellectual Property Development
 Resource Conservation & Management
 Resource Accounting & Resource Use
Optimization
 Environment Management Services
 Sustainable Energy Management
 Water Audit & Conservation
 Project / Program Management Consultancy
 Capacity Building
 Water Audit Services

9
Role of FICCI in Indian Export

Current State of Indian Economy


September 2008
Federation of Indian Chambers of
Commerce and Industry
New Delhi

----- Recent Trends in Indian Economy


-----

Industrial Growth:
The recent data on industrial production for July
2008 shows an improvement in the industrial
growth over the previous months. The industrial
growth was found to gradually pick up in July 2008-
09 compared to the growth posted in the previous
months of this year. However the growth during the
four - month period (April- July) of the current fiscal
remains much lower than the growth numbers
recorded in the corresponding months of the last
fiscal. During the April- July period of 2008-09
growth in the manufacturing and electricity sector
accelerated compared to the growth registered in the
previous months of this year. However the growth
performance remains weak when compared to the
growth of last fiscal. The increase in production was
witnessed only in the mining sector surpassing the
growth posted in the previous year.

10
Role of FICCI in Indian Export

Further following the use-based classification we see


growth in intermediate and basic goods in July 2008
was subdued as against the growth in the same
month of the previous year. Output in the capital
goods sector however increased by 22% in July this
year compared to 12.3% increase in the same month
of previous year. The growth in the consumer goods
came mainly from the consumer durables segment
that increased by 11.2% compared to the negative
growth posted in the corresponding month of last
year.

In July 2008-09 growth in seven among the


seventeen industry sectors namely food products,
beverages and tobacco, paper, metal products,
machinery, transport equipments and other
manufactured items exceeded the growths posted in
the previous year. While basic metals, nonmetallic
minerals and basic chemicals slowed in July 2008-09
compared to the corresponding month of the
previous year, production of 6 industry sectors
namely rubber, leather, wood, jute, wool and cotton
was found to drop.

Core infrastructure industries :


Growth in the core infrastructure industries slowed
during the four-month period of the present fiscal as
compared to the growth in the previous fiscal.
During the April-July period of 2008-09 the overall
infrastructure industries grew at a low 3.7%
compared to 6.6% recorded in the previous year.
Output in coal sector accelerated during the period
April- July 2008-09 compared to the same period of
last year. On all the other sectors the production
growth slowed down compared to growth logged in

11
Role of FICCI in Indian Export

last year. There was a strong slippage in the


production of crude petroleum during these four
months.

Inflation Trends :
The average WPI based inflation calculated for the
month of August 2008 continues to reign above
12.5%. Inflation rose from an average of 12.2% in July
to 12.5% in August this year. In the week ending 13th
September 2008 the WPI based inflation stood at
12.14%. During this time last year the annual rate of
inflation stood at 3.51%. The sharp difference in the
rate of inflation between now and last year has been
mainly on account of a sharp rise in the price index
of fuel and some manufactured items. Measures to
curb the rising food articles and other manufactured
commodity prices have been put in place, however
these only showed a marginal impact on the rising
price index. The fall in fuel prices from its peak USD
147 /barrel to below USD 100/barrel is yet to be
captured in the recent price index.

Stock Market Trends:


Number of events of political nature and events in the
financial markets impacted the stock markets
adversely. After the major drop in the 30 stock index
sensex in July to 13K the market somewhat recovered
in August, rising to 15 K points before dropping to
14.5 K in Sept 2008. The recent numbers show that
the market slid further by another 500 points going
below 13 K points due to the uncertainties in the
global and domestic markets.

Foreign Trade:

12
Role of FICCI in Indian Export

Despite odds (raw material prices, high borrowing


rates, losses due to forward contracts) the country
did export goods worth USD 60 billion, posting 24.6%
growth during the first four months of 2008-09 as
compared to 18.22% in the previous year. The reason
ascribed to high exports growth was increased
demand in some of the international markets.
The weakening of Rupee has helped the exporters to
recover their (those who have not hedged their
funds) losses made in the past. However, those who
opted for a forward cover during the days when
Rupee was maintaining Rs 38-40, failed to insulate
themselves from the quick and sharp weakening of
Rupee. The import bill swells due to obvious reasons
and widens the trade deficit even further.

Trends in the Exchange Rates:


Weakening of the domestic currency against the USD
benefits the exporters. However, in the present
context, weakening of the Rupee / USD favored a
section of exporters that chose not to hedge funds at
the time of strong Rupee – Dollar movement. In
September 2008 Rupee was ruling at Rs 47/ USD
weakening by about 20% since January 2008. The
present (September) exchange rate of Rupee / Euro
was also found to weaken by about 17-18% over the
exchange rate in January 2008.

13
Role of FICCI in Indian Export

Manufacturing Hub

Currently there is no homogeneity in luxury, fashion


and lifestyle sector. This disparate burgeoning
industry looks towards FICCI to initiate a dialogue
among key players in luxury and fashion.

FICCI has therefore created FICCI Lifestyle Forum to


promote the development of the Luxury Goods
Industry in India with specific interest of
encouraging Indian Lifestyle Brands to emerge. In
the same vein International Luxury houses will play
a key role for sustainable development of Indian
luxury market and simultaneously create a
manufacturing hub locally in India. The Forum
would have representation from global luxury
brands, Indian fashion brands, lifestyle products,
design houses and bespoke services.

The launch and inaugural roundtable on 28th July,


2008 will focus on the $ 450 million luxury goods
and fashion Industry. India is soon moving away
from being a backwater to 'handmade-handcrafted
in India tagline' becoming solicited in luxury circles.
A New Revival is on the cards in India as FICCI aims
to develop the Luxury Goods and Fashion Industry
and open dialogue with Industry bodies, fashion and
private equity and investment for growth of 'India
Indigenous Luxury'

14
Role of FICCI in Indian Export

What will sponsors or attendees benefit by being a


part of FLF and the launch (attach sponsorship grid
and payment gateway)

The launch of FICCI Lifestyle Forum will bring


together key players in Indian luxury sector to
initiate membership interact, dialogue and promote
India as a future manufacturing hub for global
fashion and luxury goods.

The sponsors will gain an edge with their association


with the forum and media coverage as this is the first
business forum on fashion and lifestyle sector in
India. They will be involved in future roundtables
and shape policies conducive to develop India
Indigenous brands and development of luxury sector
in India, as members of FICCI Lifestyle Forum.

Our next endeavour, FICCI Lifestyle Forum - Comite


Colbert meet is confirmed on 1st October in Paris,
exclusively for FICCI Lifestyle Forum members.
Further participation details will be available
shortly.

Who should attend and be a member of the


FICCI Lifestyle Forum

 Indian Brands looking at creating luxury


positioning
 Luxury Brands entering India from France,
Italy, Spain, Germany, US, UK
 Brand Franchisee's who have entered into JV's
of 49-51% partnership
 DIPP and Ministry of Commerce and Industry
 Real Estate majors

15
Role of FICCI in Indian Export

 Luxury Hotels and Spas, Oberoi, Ananda Spa,


Taj, AmanResorts, Four seasons, ayurveda
resorts
 Luxury Airlines
 Comite Colbert France, ,Altagamma,Italy
Walpole, UK, Luxury Institute,US to effectively
utilize our partnerships with these countries.
 Ministry of Human Resources for Skill
Development of Crafts and promote
Employment and Education
 Ministry of Civil Aviation
 Fashion and Design Bodies such as FDCI, NID,
NIFT to share commonality in larger
perspective
 Lifestyle and Fashion Editors Vogue, Verve,
L'officiel

Be a member of the FICCI Lifestyle Forum

As a member you will gain an edge by association


with the FICCI Lifestyle Forum, as this is the first
business forum on fashion and lifestyle sector in
India.

Our next meeting for FICCI Lifestyle is slated for 1st


October with Comite Colbert in Paris for our
members.

Members will be involved in future roundtables and


shape policies conducive to develop India Indigenous
brands and development of luxury sector in India

In lieu of services and platform rendered by FICCI for


organizing:

16
Role of FICCI in Indian Export

 Roundtables of FICCI Lifestyle Forum in


France, Italy and India
 Tabling issues and creating impetus for Indian
Luxury Brands to emerge and sustain
 Provide reach through B2B's with key markets
in France, Italy, Spain for skill-integration
 Events and road shows with Comite Colbert,
Walpole
 Education and employment generation in this
sector.
 Support the sector growth by mou's with
International training institutes in lifestyle,
fashion and design - Essec, Paris, SDA Bocconi,
Milan, FIT, New York
 Nurture Indian talent for future of the lifestyle
sector and India Indigenous brands

Brief profile

17
Role of FICCI in Indian Export

FICCI is the rallying point for free enterprises in


India. It has empowered Indian businesses, in the
changing times, to shore up their competitiveness
and enhance their global reach.

With a nationwide membership of over 1500


corporate and over 500 chambers of commerce and
business associations, FICCI espouses the shared
vision of Indian businesses and speaks directly and
indirectly for over 2,50,000 business units. It has an
expanding direct membership of enterprises drawn
from large, medium, small and tiny segments of
manufacturing, distributive trade and services.
FICCI maintains the lead as the proactive business
solution provider through research, interactions at
the highest political level and global networking.

Set up in 1927, on the advice of Mahatma Gandhi,


FICCI is the largest and oldest apex business
organization of Indian business. Its history is very
closely interwoven with the freedom movement.
FICCI inspired economic nationalism as a political
tool to fight against discriminatory economic
policies. That commitment, drive and mission
continue in the ever-changing economic landscape of
India, chasing always newer agenda.

In the knowledge-driven globalize economy, FICCI


stands for quality, competitiveness, transparency,
accountability and business-government-civil
society partnership to spread ethics-based business
practices and to enhance the quality of life of the
common people

Core Competence

18
Role of FICCI in Indian Export

 A reservoir of experience and expertise in


diverse fields
 Quality service provider
 Forum for continuous government-industry
interface for evolving a shared vision on
economic matters
 Information superhighway for corporate in
India and abroad
 Rallying point for track-two business
diplomacy for promoting global trade and
investment
 Professional Committees on all segments of the
economy
 Highly trained, experienced and accomplished
multidisciplinary intellectual capital as its
Secretariat
 Internationally acclaimed state-of-the-art
office infrastructure for conferences, board
meetings and business consultations
 Specialized organizations and think-tanks to
address the present and futuristic issues and
challenges
 Strong database with connectivity to every
conceivable networks to access and provide
data online to industry, government and
business organizations
 Professional approach for evolving quick
solutions to economic and industrial issues
 Perspective groups to visualize the future
challenges and requirements of the industry
 International Business Forum to help and
guide overseas business partners
 Institutionalized advisory groups to provide
customized consultancies in quality assurance,

19
Role of FICCI in Indian Export

energy auditing and sustainable and


environmental issues
 A state-of-the-art food testing laboratory
which has been the referral point for the
emerging multi-billion food industry in the
country
 Well-conceived social outreach programmers
targeted at the civil society
 Strong global connectivity’s

Executive Committee

The Executive Committee of FICCI consists of


industry leaders who hold a pride of place in the
business landscape of the country. Among them are
some of the key innovators, wealth creators and
employment providers. Their contributions to the
national economy are immense and varied.

Intellectual Capital

Highly qualified multidisciplinary Secretariat


consisting of economists, MBAs, IT professionals,
fiscal and financial analysts, lawyers, etc., who can
provide business solutions and guidance on industry
issues like quality, market access, taxation, economic
policies, etc. The intellectual capital is ever-
expanding to address newer areas and wider issues.

FICCI National Affairs

FICCI has played a proactive role in evolving the


economic policies of the nation both in the pre-
Independence and post-Independence period. The
Government has been consulting FICCI while
evolving and implementing all major economic

20
Role of FICCI in Indian Export

policies of the country. The Government of India Act


of 1936, Bombay Plan, Five-Year Plans, etc. are some
of the major economic policy instruments that were
discussed threadbare in the FICCI forum. That
partnership between the Government and FICCI
continues. Thirty-four specialized committees of
FICCI on diverse segments of the economy grapple
with sectoral issues on a day-to-day basis to provide
solutions to business and to suggest pragmatic
policies to the Government.

Global Connectivities

From Nikita Khrushchev to Vladimir Putin, President


Eisenhower to Clinton were the hosts of FICCI. That
unique international networking and interactions at
the highest level have helped the Indian business
community to expand their business horizon. From
the League of Nations (the precursor to the United
Nations) to the World Trade Organisation (WTO),
FICCI has maintained organic relationships, which
have blossomed into effective partnerships and
exchange of ideas. Consultations with the heads of
multilateral organizations like UNIDO, UNEP, ILO,
GATT, WTO, World Bank, IFC, WIPO, ADB, etc have
been a feature of FICCI activities to strike credible
communication channels with these organizations to
amplify the business point of view on developmental
matters. These track two business consultations with
multilateral organizations have resulted in forging
effective partnerships in implementing projects and
reinforcing the views of developing countries in the
global development agenda.

21
Role of FICCI in Indian Export

Joint Business Councils

Joint Business Councils (JBCs). FICCI's track two


business diplomacy with India's trading partners,
open up new business opportunities to Indian
businessmen with overseas investors, technology
suppliers, multilateral and bilateral funding
agencies. JBCs formed with over 69 countries,
including the US, Japan, South Korea, Australia and
the People's Republic of China regularly meet to take
stock of the bilateral issues and to frame newer
policy initiatives to take the two-way trade and
investment to newer heights.

FICCI is also the nodal point for the Indian


Chapters of:

 Confederation of Asia Pacific Chambers of


Commerce and Industry (CACCI)
 G-15 Federation of Chamber of Commerce,
Industry and Services (G-15 FCCIS)
 Indian Ocean Rim Business Forum (IORBF)
 Confederation of Indian Food Trade and Industry (CIFTI)
 Socio - Economic Development Foundation (SEDF)
 All India Organisation of Employers (AIOE)
 All India Shippers Council (AISC)
 Indian Council of Arbitration (ICA)
 International Chambers of Commerce (ICC India)
 International Chamber of Commerce (ICC)
 SAARC Chambers of Commerce and Industry

Allied Organizations

22
Role of FICCI in Indian Export

Forum of Parliamentarians

 The India-U.S. Forum of Parliamentarians


 The Indo-British Forum of Parliamentarians
 The Indo-German Forum of Parliamentarians
 The India-European Union Forum of
Parliamentarians
 The India-Japan Forum of Parliamentarians
 The India-Singapore Forum of Parliamentarians
 The India-Pakistan Forum of Parliamentarians

23
Role of FICCI in Indian Export

Annual General Meetings


Annual General Meetings of FICCl have been
important national economic events. The
contemporary developmental issues facing the
nation are discussed and debated by the political
leadership, business and the academia. These events
have helped the Government of India to take stock of
the developmental initiatives and to evolve policy
corrections based on industry responses.

FICCI has always stood behind the nation in the hour


of crisis. It is committed to free enterprise and
competition. That is the key to enhance the quality of
life of the people and to build a new, dynamic and
vibrant India.

Think Tank

FICCI Think Tank consists of eminent economists,


planners, civil servants and industrialists who meet
regularly in structured monthly meetings to discuss

24
Role of FICCI in Indian Export

important macro level issues confronting the nation.


A background note for the meetings is usually
prepared by one of the distinguished economists and
final recommendations will be submitted to the
Government.

Structure

World-Class Infrastructure

Located in the heart of New Delhi, in a sprawling


compound, FICCI headquarters have the world-class
infrastructure. There are seven different halls having
capacities ranging from 16-600 - a meeting hub for
business leaders.

25
Role of FICCI in Indian Export

26
Role of FICCI in Indian Export

FICCI Lifestyle Forum

Comite Colbert Roundtable - October 1st 2008, Paris

In keeping with our dialogue with partner countries FICCI signed an MOU
with Comite Colbert on 1st June 2006 to promote dialogue and creativity
between Indian and French brands in 2006. To further this endeavor, The
first meeting is going to be in Paris on October 1st for FICCI LIFESTYLE
FORUM-COMITE COLBERT Roundtable- a joint Indo-French endeavor for
the Indian Lifestyle Industry.

Comte Colbert of France, a huge umbrella which, holds the names of 68


French luxury brands under one roof. In this meet CEO's and Heads from
French brands will interact with Indian brand CEO's and owners of India
Indigenous brands to create and sustain a dialogue, and help inward and
outward integration in this sector.

The half day programme and delegation will be led by Mr. Ness Wadia as
Chairman and Mr. Mehul Chowksi Co-chairman of Ficci Lifestyle Forum on
1st October, 2008. Hon'ble Minister of Commerce and Industry Shri Kamal
Nath has agreed to preside over the meeting and deliver keynote address.
This is a rare opportunity to create dialogue, develop synergies and
exchange best practices with French Luxury Brands.

An Overview

Federation of Indian Chambers of Commerce and


Industry (FICCI) has collaborated with the world's
leading organization for quality in the USA,
namely, the American Society for Quality (ASQ). A
Memorandum of Agreement (MOA) was signed
between the two organizations at a signing
ceremony held on May 18, 2005 at Seattle at the

27
Role of FICCI in Indian Export

time of the ASQ's World Conference on Quality and


Improvement. The Annual Conference which began
on May 15, 2005 culminated on May 18, 2005 with
the signing of the Agreement. Over 2000 delegates
including 220 international delegates attended the
annual International event in its 59th year of
functioning.

Federation of Indian Chambers of Commerce and


Industry as the National Apex Chamber of
Commerce and Industry with headquarters in New
Delhi and offices in several Indian States and
overseas has a special wing for education, training,
consulting and carrying the quality movement in
India for over 15 years. It is now, popularly known
as the FICCI Quality Forum (FQF).

FICCI Quality Forum

FICCI Quality Forum (FQF) is the management


consulting division of FICCI.FQF is facilitating
business organizations in India and other
developing countries to enhance global
competitiveness through training and consulting
interventions using the best practices adopted by
leading companies in the world. To get the
knowledge and training skills on latest
management tools and techniques, FICCI has
networked with premier global knowledge
resources such as American Society for Quality,
USA, LEAN Enterprise Academy, UK, Kaizen
Institute, Japan etc.

American Society for Quality

28
Role of FICCI in Indian Export

The American Society for Quality (ASQ) is the


world's leading authority on quality. With more than
100,000 individual and organizational members,
this professional association advances learning,
quality improvement, and knowledge exchange to
improve business results, and to create better
workplaces and communities worldwide.

As champion of quality movement, ASQ offers


technologies, concepts, and training to quality
professionals, quality practitioners, and everyday
consumers, encouraging all to Make Good Great.
ASQ provides professional training and certification
that are considered as global benchmark and utilized
by leading organizations around the world to set
objective criteria to assess competency of quality
professionals.

ASQ & FICCI Professional Certified Training


Programs Offered in India

 Lean Manufacturing
 Lean Service
 Six Sigma Black/Green Belt (CSSBB/CSSGB)
 Lean Six Sigma Black/Green Belt
 Lean Six Sigma-Champions training
 Lean Six Sigma-Executive training
 Certified Manager of Quality & Organizational
Excellence (CMQ/OE)

 Certified Quality Engineer(CQE)

29
Role of FICCI in Indian Export

Federation of Indian
Chambers of
Commerce and Industry
ATA Carnet Application Form To be
completed by Carnet holder
& Undertaking

(This form should be completed in typescript or by hand in


ink and block capitals)
To: Federation of Indian Chambers of Commerce & Industry
I, ……………………………………………………………………….for and
on behalf of (name and address of firm)
…………………………………………………………………………………………
…………………………..

30
Role of FICCI in Indian Export

…………………………………………………………………………………………
……………………………………
……………………………………..Telephone No. …………………………
Fax / E-Mail………………………….
Apply for a Carnet in the name(s) of (give name(s) of
accredited persons(s) who will use the Carnet)
…………………………………………………………………………………………
…………………………………………………………………………………………
………………………………………………………………… for use in the
following countries (please indicate the number of VISITS
being made to each country and those countries being
crossed in TRANSIT).

31
Role of FICCI in Indian Export

INTENDED USE OF the Carnet under the following


categories ONLY (delete as appropriate):
(a) Commercial Samples
(b) International Trade Fair/Exhibition (please give name
and place)
(c) Professional Equipment
NB: TO PROCESS, FICCI REQUIRES 24 HOURS
FROM RECEIPT OF CARNET APPLICATION
EXPRESS SERVICE IS AVAILABLE
To be completed by Issuing
Chamber
ATA Carnet No.

UNDERTAKING

I, the
undersigned……………………………………………….
.…………………….
of……………………………………….. (name of the
authorized person & name of the firm)
attach the list of goods to be entered in the
Carnet and undertake to repatriate the
goods in question. Further that the goods
will be re-exported from any country into
which they have been temporarily imported
within such period as stipulated by any
customs.
If the goods are not re-exported, for
whatever reason(s), within such period, I

32
Role of FICCI in Indian Export

accept responsibility for any negotiations or


proceedings with any Customs direct or
indirect, and to pay all duties, taxes and
charges which may result from non re-export
or failure to observe Customs regulations
and requirements both in INDIA and abroad.

I enclose
1. Bank Draft / Cash for
Rs……………………….in payment of the Issuing
fee.
2. Security Deposit in the form of
Draft / Cash / Guarantee for Rs……………….
from the following Bank or Insurance
Company ……………………………………………………
(name & address of the bank)

I agree that the Draft / Cash on deposit or


Guarantee may be used to reimburse the
issuing chamber for any duty, taxes or
charges as above should these be incurred
and for any fees charged by the issuing
chamber for the issue or regularization of
the Carnet.

I further agree to pay the issuing chamber


immediately upon receipt of its demand in
writing all or any such sum or sums of
money which it may have paid or be called
upon to pay in respect of any professional or
other fees, costs, liabilities and expenses of

33
Role of FICCI in Indian Export

any nature whatsoever incurred by the


issuing chamber as a result of, or in
connection with, the issue of the Carnet.
I have read and understood the conditions of
the guarantee, and declare that the above
particulars and those in the list of goods
attached are true and correct and I
undertake to return the Carnet to the issuing
chamber after use.

The use of a Carnet does not absolve the


holder from observing the Customs
regulations of the countries operating the
scheme, e.g. import and export prohibitions
or restrictions.

Date……………..
Signed………………………………
For and on behalf of _____(Name of the firm)
Director, Secretary, Proprietor, Partner or
duly authorized person

34
Role of FICCI in Indian Export

Indian exports to Africa can touch $50 bn


by 2012: FICCI

New Delhi, April 7 (IANS) A day before India and


African heads of state meet for the first-ever India-
Africa forum summit, an apex Indian business
chamber released a survey saying India should
discuss with African countries ways to make
business easier in order to double exports to $50
billion in 2012. The Federation of Indian Chambers of
Commerce and Industry (Ficci) had conducted a
survey on ‘Strengthening Economic Engagement
between India and Africa’ among 41 Indian
companies having significant business presence in
Africa in diverse fields from automobiles and energy
to gems and jewellery.

In recent years, there has been a surge in trade


volume between India and Africa that has increased
by 285 percent in the last four years to $25 billion.
This has increased Africa’s share in India’s global

35
Role of FICCI in Indian Export

trade from 5.8 percent in 2002-03 to 8 percent in


2006-07.

“Given such optimism in trade with African nations,


it is felt that doubling of exports to Africa to $50
billion by 2012 is a distinct possibility,” Ficci said.

According to the survey, Indian companies wanted


the government to adopt more pro-active measures
to encourage trade, like entering into preferential
trade agreements with individual countries and
regional economic communities and enhancing the
lines of credit to African countries. They called for a
special package to push Indian exports into African
markets.

Besides, the survey called for strengthening the trade


promotion cell and economic sections in Indian
embassies and high commissions located in Africa.

A public private partnership initiative to create


“Africa Promotion Council” was recommended,
which could have sub-councils focusing on each of
the five regions in the African continent.

Further, Indian companies called attention to


barriers encountered in realising the trade potential
with Africa - from prohibitive costs of shipping and
shortage of shipping line to high transaction costs
and delay in obtaining visas.

“Brand India is still in infancy in many of the African


countries. There is a need to promote products from
India in the African countries. This is particularly
important if we are to add more and new products to
our export basket,” said the survey report.

36
Role of FICCI in Indian Export

INDIA: FICCI Seeks Special Package


for Textile Industry

Expressing deep concern over the steep decline in the


profitability and investment in the Indian textile
industry, FICCI has immediately sought a ‘SPECIAL
TEXTILES PACKAGE’ for the industry to face the
current economic crisis.

FICCI noted that profitability of Indian textile

37
Role of FICCI in Indian Export

industry fell by over 99% in June 2008 quarter and


investment in the current year (for April-July) has
been less than one third of last year for the same
period.

FICCI also said that competing countries are also


bailing-out their textiles industry in the midst of
these crises and in fact Pakistan Government has
only last week approved the incentive package for its
textile industry.

Under ‘Special Textiles Package’ FICCI has


demanded, among other things, Moratorium for one
year on term loans for textile industry; Increased
drawback rates; Export credit at international rates;
Extension of Sunset Clause for EOUs for 5 years;
Release of Pending Funds of last year under TUFS;
Reduction of Excise duty on man-made fibres; 10%
Import duty on Man-made fibres; and 7% Duty Free
Scrips as a refund of State taxes.

FICCI emphasized that unless these steps/measures


are implemented swiftly to bail-out the Indian
textiles industry, these is a risk of large scale lay-offs
in the industry.

Pointing out the employment intensive nature of the


industry, FICCI said that for every 1 unit of capital in
textiles industry 7 people are employed whereas, in
case of steel and auto sector only 1 and 2 people are
employed respectively for every unit of capital. So
diminishing investment in the textile sector could
have significant impact on the employment front.

FICCI said that under the ‘Special Package’

38
Role of FICCI in Indian Export

Government should provide a moratorium of one


year for repayment of principal amount of term
loans taken by textile industry. For this there is no
need for brining any change in the Act or rules by
RBI and financial institutions only need to be
advised to restructure their loan portfolios
accordingly.

Further, FICCI noted that Drawback rates have been


reduced by 1 to 3% for textile products with effect
from 1st September 2008. Whereas, the input cost for
the industry has substantially gone up in the last few
months.

Therefore, FICCI said that these drawback rates need


to be increased to their levels that were existing prior
to 1st September 2008.

The Chamber also demanded that Sunset Clause for


EOUs should be extended for another 5 years at least.
Under this Clause, EOUs are entitled for income tax
exemptions under Section 10 B of Income Tax Act for
a period of 10 years that is expiring by March 2009.

Given the profitability position of textile industry


currently, it would not be appropriate to withdraw
this benefit next year as a result of which tax for
EOUs would be around 34% after March 2009, FICCI
pointed-out. Also, Indian textile exporters need to get
export credit at international rates as is the case in
competing countries.

Exporters in competing countries are getting export


credit at a lower rate of 6%, whereas in India the
interest subvention for packing credit that provided

39
Role of FICCI in Indian Export

export credit at BPLR (Benchmark Prone Lending


Rate) minus 4.5% was withdrawn by Government
w.e.f. 30th September 2008.

Besides, there is a need to increase custom duty on


PSF (Polyster Staple Fibre) & PFY (Polyster Filament
Yarn) to 10% from the existing 5%. Currently, there is
a surplus capacity of synthetic fibres and yarns
globally.

Also, as a result of steep increase in the price of


Naptha (from Rs.27000/MT to Rs.52000/MT since
April 2007) the entire chain of Polyester fabrics has
suffered. The difference between the raw material
price and selling price of finished product (PSF &
PFY) has reduced so much that it does not cover even
the variable cost, FICCI pointed-out.

FICCI further noted that the growth of textiles


industry has come down from 8% in 2005-06 to
merely 0.8% in April-August 2008-09. Looking at the
Industrial Entrepreneur Memorandum (IEMs) filed,
the investment has come down drastically in the
current year, FICCI observed.

Last year, 174 IEMs were filed during April to July


representing an investment of Rs.9477cr. However,
this year only 108 IEMs have been filed for April-July
with an amount of Rs.3000cr. only, FICCI study
pointed-out.

FICCI emphasised that the Government needs to


swiftly announce a package for textiles industry that
would not only make our exports competitive but
also incentives investment.

40
Role of FICCI in Indian Export

While neighbouring countries like Pakistan has


already announced one such package for its textile
industry, the other neighbouring country i.e.
Bangladesh is optimistic that the demand for their
garments would increase despite these crises since
their garments are the cheapest.

Unless the package is announced now by the


Government, Indian textiles industry would lose out
to its competitors like Bangladesh, Pakistan etc in
international markets, FICCI said.

LIST OF EXECUTIVE COMMITTEE


MEMBERS – 2008

41
Role of FICCI in Indian Export

42
Role of FICCI in Indian Export

43