Thesynergyonline  Exports Bureau

NEW DELHI, JANUARY 26 :
AEROSPACE and defence exports are likely to clock $2 billion in the current fiscal, apex industry body ASSOCHAM said.

With about 18 per cent growth during the first three quarters of 2011-12, aircraft exports including component parts stood at about 1.31 billion dollars against $1.11 billion in the corresponding period of previous fiscal, according to The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Parts and components have contributed a whopping 96 per cent of the total aerospace exports, highlighting India’s manufacturing capability in aerospace sector oriented towards tier I, II and III suppliers as against aircraft original equipment manufacturers (OEMs).
In the interest of top level private defence equipment manufacturers and exporters, ASSOCHAM has sought an exemption from input tax and levies for their contractors and sub-contractors by issue of customs and excise duty exemption certificates on the lines of Defence Public Sector Undertakings (DPSUs).

“Issuance of customs and excise duty exemption certificates to DPSUs to claim exemption from input tax and levies is making the exports by private sector exporters uncompetitive by about 8 percent,” said ASSOCHAM.

Special chemicals, organisms, materials, equipment and technologies (SCOMET) chapter 5 and 6 must be populated, while, India Harmonised Code System (ITC-HS) description of Defence and Aerospace is inadequate, said ASSOCHAM.

There is also a need to link SCOMET codes to the items listed in the Defence Procurement Procedure (DPP) export of which is considered to be offsetable.
The list of countries to which A&D trade is not encouraged be made available to industry on request.

Besides, there is a lack of proper definition for a defence product which is imperative for Aerospace and Defence (A&D) sector to be able to access policy support and incentives for exports. In the absence of list for identification of defence products, the government support remains adhoc, lengthy and unnecessarily litigative.

A long and delayed clearance process of about three months for genuine exports of defence products to qualified countries from India is a pain for majority of A&D exporters.

Sops like incentives and benefits on taxation dues and levies to A&D sector has been limited and skewed against private players. Besides, the government outlook on structural and taxation benefits to dedicated aerospace and defence manufacturing hubs also remains non-committal, said the chamber.

According to ASSOCHAM, the current rate of indirect taxes on Maintenance, Repair and Operations (MRO) activities are quite high making them uncompetitive as customs duty is exempt on parts imported for MRO of aircraft subject to specified conditions which if not satisfied would impose customs duty in the range of 19 per cent to 27 per cent on the imported parts.

First time exports must be provided with incremental offset multipliers and impact of duties and indirect taxes must be reduced for the export oriented production by the private sector.

ASSOCHAM has also suggested the government to introduce defence as priority sector for export promotion councils like Engineering Export Promotion Council (EEPC India). A Defence Export Award must also be set up to acknowledge significant exports and must be categorised in the National Export Awards.

Thesynergyonline Export Bureau  

Mr Julio De La Guardia, Ambassador of Panama (2nd from left), Mr C P S Bakshi, Officiating .Development Commissioner, Noida SEZ (third from left), Mr Sanjeet Singh, Director, Ministry of Commerce & Industry (2nd from right), Mr Sukhbir Singh, Regional Chairman, EPCES (extreme right) and Mr O.P. Kapoor, Dy Director General, EPCES (extreme left).

NEW DELHI, JANUARY 23 :
EXPORT Promotion Council for EOUs and SEZs (EPCES) organized a meeting of EOUs, SEZ units and SEZ developers recently with Mr Julio De La Guardia, Ambassador of Panama in India at Noida Special Economic Zone. 
The prospects for increasing trade between India and Panama were highlighted by Mr.Julio De La Guardia, Ambassador of Panama.
         
Mr Julio De La Guardia, Ambassador of Panama in India informed the members that Panama is a service country and is gateway to Latin America. Panama offers  good opportunities for trade and for having access on South American market. 

In the current year exports from the gem and jewellery sector in India to Panama has increased by 30 percent over the previous year. 

He further mentioned  that Colon Free Trade Zone of  Panama was set up in 1948 and  3000 units are operating.  Colon Free Zone is an ideal hub and is the main commercial distribution center containing warehouses, showrooms etc.. 

Nearly all world routes pass the Colon Free Zone as it is at the Atlantic gateway to the Panama Canal with access to both the Atlantic and the Pacific.  Wholesalers and retailers from all countries of Latin America and Panama travel to Colon Free Trade Zone to buy all consumer products either by the container load or in smaller quantities.  That is why buyers from different countries prefer to come to Panama. 

The Ambassador of Panama further informed that forthcoming multi-products trade fair "Expocomer"  is a very ideal place for Indian companies to exhibit products and services to local and regional markets, introduce new products to the market, evaluate the competition and use the Colon Free Trade Zone as a bridge to re-export products to the Caribbean, Central America and South America.

Mr C P S. Bakshi, Officiating Development Commissioner, Noida SEZ said that Ministry of Commerce & Industry has identified Latin America as one of the focus areas for increasing trade between India and countries of Latin America. 

Mr Sanjeet Singh, Director, Ministry of Commerce & Industry informed that the Union Budget for 2012-13 is likely to be announced in mid-March, 2012. The suggestions submitted by EPCES to MOC&I are being looked into. 

He said that SEZs have contributed immensely in terms of investments, manufacturing, exports and generating employment. 
 
 Mr O.P. Kapoor, Dy.Director, General, EPCES mentioned that exports from EOUs and SEZ Sector in 2010-11 is to the extent of Rs.3,75,692 crore (US $ 79 billion). 

The total exports from SEZs during 2010-11  was  Rs.3,15,867.85 crore, representing a growth of 43 percent over the last year i.e. 2009-10 of Rs.2,20,711 crore. 

The total employment provided in SEZs as on September 30, 2011 is 7,32,839 persons and the  total investments  in SEZs as on September 30, 2011 is Rs 2,77,259 crore.
 
Mr Sukhbir Singh, Regional Chairman, EPCES mentioned that since Ministry of Commerce has has approved the EPCEs participation in exhibition at Panama to be held from March 21 to 24 , 2012. 

He said that it will be a good opportunity for our members to participate in trade fair at Panama.
 
He further said that Ministry of Commerce & Industry is organizing India Engineering Sourcing Show (IESS) 2012"  to be held from March 22 to 24, 2012, in Mumbai. This Made in India Show will provide an appropriate opportunity to explore global business alliances and network with leading industries of the world. It is expected that  more than 300 foreign exhibitors will be participating in the Show.  

More than 1000 foreign buyers  from the USA, Canada, Europe, Middle East, ASEAN, Africa, CIS and Latin American Countries and 10,000 visitors  will be attending the Show.   
 
While proposing Vote of Thanks, Mr Rahul Gupta, Regional Vice-Chairman, EPCES thanked Ambassador of India in Panama and Ambassador of Panama in India for their help to arrange one-to-one meetings and mobilizing more participants in the exhibition.  

Thesynergyonline Exports Bureau

NEW DELHI, DECEMBER 22 :
COMMERCE secretary Rahul Khullar ON Thursday asked Indian exporters to get the first mover advantage in new markets like Africa and Latin America as global economic environment is unlikely to improve in the near future.

However, it is within the realm of possibility to reach the annual  export target of $300 billion  this year and take it to the level
of 450 billion dollars by 2013-14, he said while releasing a strategy  paper by The Associated Chambers of Commerce and Industry of India  (ASSOCHAM).

“The external environment is not good – especially in the European  Union and the United States. The next two years are going to be  difficult. There are going to be cutbacks in government expenditure, exchange rate fluctuations and financial sector problems.”

Mr Khullar said Indian exporters should reduce the cost of doing  business to gain competitiveness. India is negotiating free trade  agreements with the European Union, Canada, Australia, New Zealand,  Indonesia and Thailand. This will reduce tariff levels and provide access to new markets.

“We should create industrial clusters and upgrade infrastructure to get boost exports as rising imports could create serious balance of trade problem,” he said. “We should not be in a position that some  liberalisation policies have to be rolled back.”

The commerce secretary said the rising fiscal deficit does not offer the possibility of any stimulus package for exporters. “We don’t have the money to throw at this point of time.”

He said exporters should diversify their product basket and invest in research and development to infuse innovation in manufacturing processes.

Meanwhile, ASSOCHAM president Dilip Modi called for procedural rationalisations and measures to enhance market access. To bring down transaction costs of manufacturers and exporters, the government must upgrading infrastructure
He said the right incentives will help reach the trade target with Association of South East Asian Nations (ASEAN) of 70 to 100 billion dollars over the next two years, up 30 per cent from $50 billion in 2010-11.

Mr Modi said special economic zones should be strengthened as vehicles to promote exports.

ASSOCHAM secretary general D.S. Rawat said India’s Look East Policy has started yielding desirable results on the economic, political and strategic fronts.

Thesynergyonline  Economic Bureau

NEW DELHI, DECEMBER 12 :
EXPORT  Promotion Council for EOUs and SEZs (EPCES),  in association with SEEPZ Special Economic Zone,  organized a meeting of EOUs and SEZ units with  Mr.Julio De La Guardia, Ambassador of Panama to India on December 9, 2011 at SEEPZ SEZ, Mumbai for  increasing trade between India and countries of Latin America.
 
Mr Julio De La Guardia, Ambassador of Panama to India informed the members that Panama is a service country and is gateway to Latin America.

Panama offers  good opportunities for trade and for having access on South American market. 

He said that during the current years exports  from gem and jewellery sector of India to Panama has increased by 30 pecent over the exports of previous year.

He said that Colon Free Trade Zone of  Panama was created in 1948. 

At present 3000 units are operating in the zone. Colon Free Zone is an ideal hub and is the main commercial distribution center containing warehouses, showrooms etc..

Nearly all world routes pass the Colon Free Zone as it is at the Atlantic gateway to the Panama Canal with access to both the Atlantic and the Pacific. Wholesalers and retailers from Panama and other countries travel to this Zone to buy all consumer products either by the container load or in smaller quantities.  That is why buyers from different countries prefer to come to Panama. 

Mr Julio De La Guardia, Ambassador of Panama further informed that “Expocomer”  is a multi-products trade exhibition and is a very ideal place for Indian companies to exhibit products and services to local and regional markets, introduce new products to the market, evaluate the competition and use the Colon Free Trade Zone as a bridge to re-export products to the Caribbean, Central America and South America.
 
 Dr Ved Prakash, Development Commissioner, SEEPZ SEZ mentioned that Government has identified Latin America as one of the Focus Areas for increasing trade between India and countries of Latin America. 

He said that EOUs and SEZ Units must take advantage of the business opportunities available in Panama.
 
While welcoming, Mr P.C. Nambiar, vice-chairman, EPCES mentioned that exports from EOUs and SEZ Sector during 2010-11 is to the extent of Rs.3,75,692 crore (US $ 79 billion). 

The total exports from SEZs during 2010-11  was  Rs.3,15,867.85 crore , representing a growth of 43 percent over the last year i.e. 2009-10 of Rs.2,20,711 crore.

The total employment provided in SEZs as on 30thSeptember, 2011 is 7,32,839 persons and the  total investments  in SEZs as on 30th September, 2011 is Rs.2,77,259 crore.
 
Mr P C Nambiar further  informed that Council has so far  organized 36 open house meets with senior Central and State Government officials all over India for resolving the issues of EOUs and SEZs.

As a result,  a large number of issues have been resolved.  Apart from this, the Council also participate in multi-products trade fairs/exhibitions abroad.

In these events, the members have an opportunity to directly interact with foreign buyers, businessmen and investors.

The object of organizing these events is to increase India’s exports with other countries.
                                                                                                 
Mr O P Kapoor, Dy.Director General, EPCES informed that EPCES  has been designated as nodal agency by the Government to participate in trade fairs/exhibitions abroad and also reimburse Market Development Assistance to EOUs and SEZ Units.  This meeting has been convened so that EPCES Members from Maharashtra have an opportunity to interact with  Ambassador of Panama about the potential that exist in the Latin American market.

He further said that members should participate in Expocomer at Panama in March, 2012 and JUNWEX Jewellery Show at St.Petersburg, Russia in February, 2012.

The Members may have an opportunity to display their products and also interact at one-to-one meetings with  foreign buyers/investors.  The exporters may also achieve their export targets which they have fixed.
 
Mr Rajeev Shankar Pandya, Past Chairman, SEEPZ Gem & Jewellery Mfrs. Association informed that Latin America and CIS (Russia) are good markets for Gem & Jewellery sector.

In these countries the members from SEEPZ SEZ are generating exports for the country.  He urged members to come forward by participating in EPCES events abroad.
 
While concluding, Mr H.P. Srivastava, Regional Vice-Chairman, EPCES mentioned that Shri Yogeshwar Verma, Ambassador of India to Panama has also assured fullest cooperation and assistance of Embassy of India in Panama and to arrange their meetings with wholesalers, retailers etc. operating in Colon Free Trade Zone.

Thesynergyonline Exports Bureau

NEW DELHI, NOVEMBER 15 :
THE Government has formally approved 583 SEZs. Out of which, 381 SEZs have been notified so far and 148 SEZs are in operation as on September 30, 2011. Out of 148, 17 are multi-products SEZs and remaining are IT/ITES, engineering, electronics, hardware, textile, bio-technology, gems and jewellery, informed Mr O.P. Kapoor, Dy.Director General, Export Promotion Council for EOUs and SEZs (EPCES).

Mr Jatin R. Mehta, chairman, EPCES said that EOUs and SEZs are engines of economic growth and are complimentary to each other. The share of EOU/SEZ sector to national exports is 34 percent in 2010-11.

Mr Mehta informed that exports from SEZ sector has shown growth of 26.20 percent in the first 2 quarters of current financial year i.e. April-September 2011 over the corresponding period of last year.

The total exports from SEZs in April-September 2011 is to the extent of Rs.1,76,479.69 crore.

He informed that total exports from SEZs in 2010-11 was Rs.3,15,867.85 crore representing a growth of 43 percent over the last year i.e. 2009-10 of Rs 2,20,711 crore.

Mr Mehta further informed that the total employment provided in SEZs as on September 30, 2011 is 7,32,839 persons and the total investments in SEZs as on September 30, 2011 is Rs.2,77,259 crore.

Mr Mehta holds that this quantum of growth in exports in the SEZ sector will be maintained and this sector will generate more and more exports and employment for India.

Thesynergyonline Exports Bureau

 
NEW DELHI, NOVEMBER 09 :
AS many as 15 ITS probationers interacted with Export Promotion Council for EOUs and SEZs( EPCES)  on the role of Export Promotion Councils and SEZ Scheme of India on Wednesday.
 
Mr O P Kapoor, Dy.Director General, EPCES informed that EOU and SEZ Schemes are playing a very critical role in providing employment, increasing exports, attracting investments both foreign as well as domestic and in creation of world class infrastructure in the country.  The response from the international investors as well as domestic investors to the SEZ Scheme is so far encouraging.     
 
He further said that there are 2446 EOUs and 3240 SEZs in operation.  The exports from EOUs and SEZs in 2010-11 was Rs 3,75,692 crore with a contribution of 34 percent to national exports.  

EOU Scheme has witnessed progressive downfall from Rs 83,700 crore in 2009-10 to Rs.59,824 crore in 2010-11.  The main reason of this downfall is debonding/exiting of 354 units in 2010-11.  

Besides, the benefit under section 10B has also been withdrawn after 1.4.2011.  The Ministry of Commerce had set up a Committee under the chairmanship of Mr S.C. Panda, IAS, Development Commissioner, Noida SEZ to review, revamp and remodel the EOU Scheme.  

The committee has submitted its report to Ministry of Commerce with its recommendations for revamping the EOU Scheme.  EPCES hopes that the recommendations of the said may be implemented so that EOU Scheme is nurtured.
         
 Mr Ajay Nijhawan, Convenor, EPCES Panel on SEZ Developers briefed about the SEZ Scheme.  He further mentioned that  first Export Processing Zone in India was established in 1965 in Kandla and till 2006 only  17 SEZs were established in this sector.   At that time the exports from EOU/SEZ Sector was to the tune of Rs.72,302 crore, which has risen to Rs.3,75,692 crore.   Out of which,exports from SEZs were Rs.3,15,868 crore representing a growth of 43.11 percent over the previous year. 
  The Government has formally approved 585 SEZs so far.  Out of which, 381 SEZs have been notified and 143 SEZs are in operation.  

In the current financial year,  exports from SEZs as on June 30, 2011 is to the extent of Rs.72,255.49 crore representing a growth of 23.12% over the exports of the corresponding period of financial year 2010-11.   

The total investments in SEZs are to the extent of Rs.2,12,914.36 crore.  The SEZ sector has provided employment to 7,14,412 persons. 
 
 He further said that MAT/DDT has been introduced in Union Budget. He further mentioned that EPCES has taken up the issues of DTC, MAT and DDT with  Parliamentary Standing Committee on Finance.
 
Mr Hitendra Mehta of Vaish Associates, member, Panel on SEZ briefed about  the impact of taxation on SEZ. 

Thesynergyonline Export  Bureau

NEW DELHI, SEPTEMBER 28 : EXPORT Promotion Council for EOUs and SEZs (EPCES) at an  annual general meeting on Wednesday, Mr Anup Wadhawan, Joint Secretary, Ministry of Commerce & Industry and Mr S C Panda, Development Commissioner, Noida SEZ have released 8th Edition of Book on Notifications  Circulars issued by CBEC, CBDT, DGFT, RBI etc.

  This book is of immense help to EOUs, SEZ Units and SEZ Developers in their day-to-day functioning, informed Mr O P Kapoor, Dy Director General, EPCES.

Mr Anup Wadhawan, Joint Secretary, Ministry of Commerce & Industry said that since the operationalisation of SEZ Act and Rules in 2006, now the  time has come to critically analyse the achievements and developments taken place in the SEZ Scheme.  

He said  that the growth of SEZ sector has largely taken place in 5/6 States viz. Andhra Pradesh, Tamil Nadu, Haryana, Rajasthan etc.    He said that   dispersal of manufacturing and economic activities have not happened in a significant manner.  

  However, there is remarkable growth and significant achievements in  terms of investments, exports and employment generation in SEZs. 

Mr Wadhawan further said that a large number of SEZs have been formally approved and out of which only few are in operation.   However,  Ministry of Commerce & Industry is in the process of preparing a Discussion Paper which includes all issues and the alternatives for resolving these issues.

While welcoming, Mr Jatin R. Mehta, Chairman, EPCES informed that Ministry of Commerce & Industry has formally approved 585 SEZs so far.  Out of which, 381 SEZs have been notified and 143 are in operation. In  2003, when this Council was set up, the exports from EOUs and SEZs was to the extent of Rs.33,647 crore.  This figure has risen to Rs.3,75,692 crore during 2010-11 representing a remarkable growth of  over 10 times.

Chairman, EPCES further informed that 8th updated version of a Book,  which incorporates Notifications/Circulars, relating to EOUs and SEZ Units,  issued by CBEC, CBDT, DGFT and RBI, updated SEZ Act & SEZ Rules is very useful to EOUs and SEZ Units in their day-to-day functioning. 

While proposing vote of thanks, MrP.C. Nambiar, vice-chairman, EPCES informed that SEZ Act has not been in force in all States.

The SEZ Act should be enacted in all the States.   On the issue of DTC, EPCES will meet Parliamentary Standing Committee on Finance headed by Mr Yashwant Sinha shortly to highlight the adverse effect of implementation of Direct Tax Code.   

Thesynergyonline Export Bureau

NEW DELHI, SEPTEMBER 20 :
THE  Indian edible oil industry is under threat of closure due to the new export duty structure adopted by the Indonesian Government with effect from September 16, 2011 on various palm oils.

This has been done in order to encourage its  local refining industry so that larger quantity of refined Palmolein (RBD) can be exported from Indonesia as against the crude palm oil (CPO).

The present port-based refining capacities in India is approximately 12 MT PA as against the import of about 8.5 MT PA of different crude vegetable oils. Such large refining capacities have been set up after the year 2001 when for the first time the Indian Government brought a differential duty on refined and crude palm oils imports. This was evidently with the objective of encouraging the Indian Refining Industry.

The total investment on the port based refineries in India is about Rs 10,000 crore with direct employment of over 5 lakh people in India. With the differential duty of 16.5 percent on crude palm oil and 2 percent on the packed refined palm oil, it will be impossible for the Indian industry to compete with their counterparts in Indonesia.

India presently imports about 6 MT of crude palm oil from Indonesia and 1 MT of RBD Palmolein from Indonesia. This is on the basis of the hitherto duty structure where there was no difference on the export of CPO and RBD palm oil by Indonesia.

With the new duty structure coming into effect, it does not need any great commercial acumen to judge that the entire quantity of CPO being imported in the country will be replaced by the import of RBD palm oil and this will definitely strike a death blow to the Indian refining industry. In the long run, due to the weakening of the Indian refining industry, Indonesian refineries will exploit the scenario by dictating prices to their advantage , said Mr Sushil Goenka , president of the Solvent Extractors' Association of India .

The Solvent Extractor’s Association of India has urged the Government of India to increase Import duty on RBD Palmolein to 16.5 percent from the present 7.73 percent, with tariff value to be increased from USD 484 pmt to current market prices of USD 1150 pmt.

There will be no impact due to import duty increase on RBD Palmolein as most of the export duty benefit will be retained by the Indonesian Refineries since refining capacity is still lower than CPO production, Mr Goenka said..

Once India levies higher import duty on RBD Palmolein, status quo will be maintained and prices of CPO will have to be maintained as earlier by Indonesian exports since they will need to export CPO, Mr Goenka added..

Refining capacity in India at 15 MT is almost 40 to 50 percent higher than edible oil imports.   This will ensure that the Industry does not make abnormal margins which will keep prices under check, he added.

Thesynergyonline Exports Bureau

NEW DELHI, JULY 22 :
DURING the current financial year exports from SEZs as on June 30, 2011 is to the extent of Rs.72,255.49 crore, representing a growth of 23.12 percent over the exports of the corresponding period of FY 2010-11, informed Mr O.P. Kapoor, Dy.Director General, Export Promotion Council for EOUs and SEZs (EPCES) .

The Government has formally approved 585 SEZs so far. Out of which, 381 SEZs have been notified as on July15 , 2011 and 143 SEZs are in operation as on June 30,2011.

Mr Jatin R. Mehta, Chairman, EPCES informed that the total investments in SEZs as on June 30, 2011 are to the extent of Rs.2,12,914.36 crore. The SEZ sector has provided employment to 7,14,412 persons as on June 30, .2011.

Thesynergyonline Export Bureau

NEW DELHI, JULY 15 :
COMMERCE Secretary Dr.Rahul Khullar has released report on review and revamp of EOU Scheme. Ministry of Commerce & Industry, the Government of India has constituted a committee under the chairmanship of Mr S C Panda, IAS, Development Commissioner, Noida Special Economic Zone to suggest measures for vitalizing EOU Scheme and to create synergy between EOU and SEZ Schemes due to decline in exports and exiting of EOUs from the scheme in the wake of Sunset Clause of Income Tax benefits after March 31,. 2011.
 
Mr O.P. Kapoor, Dy.Director General, Export Promotion Council for EOUs and SEZs (EPCES) inforfmed that 100 percent Export Oriented Unit (EOU) Scheme was introduced in 1980 with an exceptional feature of locational freedom for setting up a unit anywhere in India.

The Scheme was immensely used by SMEs sector by setting up their units for export purpose. The objective of the Scheme was to encourage additional production capacity in manufacturing sector by attracting foreign investment and create employment in the country so as to contribute export and economic growth of India.

By the year 2009-10, 2586 EOUs, 8121 STPs and 144 EHTPs were operating in the country.

EOUs have made export of goods and services worth Rs.84,135 crore besides exports fromSTPs and EHTPs of Rs.2,05,505 crore and Rs.8,028 crore respectively.

Thus, the total exports under EOU Scheme were valued at Rs.2,97,668 crore for the year 2009-10.
 
Mr Panda informed that the Committee have suggested fiscal measures, policy initiatives, administrative mechanism, procedural simplifications and rationalization and measures to reduce transaction cost and hassles in order to arrest and reverse the declining trend in setting up of EOUs and their exports and to ensure a sustained long-term policy support to them.ement of spares to 15% from 5 percent for EOUs in granite sector and removal of these spares to granite quarry.
 
EPCES hopes that the above recommendations of the Committee will yield fruitful results to EOU Scheme and fresh investments will be made in Scheme.

Thesynergyonline Export Bureau

NEW DELHI, JULY 08 : INDIA'S
exports have registered a growth of 46.4 percent during June 2011, at US $ 29.2 billion. Interacting with the mediapersons here Friday Mr Rahul Khullar, Commerce Secretary, informed that during the period April-June 2011, exports have reached a level of US $ 79 billion at a growth of 45.7 percent while the imports were US $ 110.6 billion with a growth of 36 percent and a trade deficit of negative US $ 31.6 billion, during the same period.

Mr Khullar also informed that India's imports in June 2011 were US $ 36.9 billion registering the growth of 42.4 percent. Balance of trade for the month of June 2011 stood at negative US$7.7 billion .

Regarding the consistently growing exports, Mr Anand Sharma Union Minister for Commerce & Industry said, "With the export showing a steady growth, there is a growing satisfaction. If we keep growing at an excess of 79 billion US $ we can achieve our target by 2014. This growth is possible due to the collective efforts and endeavours of manufacturers and exporters. "

"At the same time our imports are also increasing due to the high commodity prices especially high petroleum prices. The figures for first quarter are quite encouraging, hope that the industry continuous to grow," he added. 

During April-June 2011, exports the following sectors have done well viz., engineering, 94 percent (US $ 23 billion); Gems & Jewellery, 19 percent (9.25 billion US $); petroleum & oil products, 60 percent (US $ 14 billion); manmade yarn & made-ups, 30 percent (US $ 1.2 billion); electronics, 69 percent (US $ 2.8 billion); Marine products, 27 percent (0.6 billion); and leather registered the growth of 26 percent (1.1 billion US $.)

Interacting with the mediapersons, Mr Khullar stated that exports of iron ore, Fruits & vegetables and tobacco are on the negative growth because of ban on exports on these sectors. 

As regards imports during April-June 2011, the growth estimates on the following sectors are: POL, 18 percent (US $ 30.5 billion); pearls and precious stones, 10 percent (US $ 7.5 billion); gold and silver, 200 percent (US $ 17.7 billion); Iron and steel, -10 percent (US $ 2.7 billion) and machinery, 49 percent (US $ 9 billion) .

Thesynergyonline Economic Bureau

NEW DELHI, JULY 06 :
EEPC India with an objective of to achieve substantial rise in trade for engineering goods and services organized a seminar on doing Business with Canada, here ON Wednesday.

Speaking on the seminar Mr Arvind Mehta Joint Secretary Department of Commerce said, "Considering the fact, that China is having an extensive presence in Canada this event could be piggy backing on various other measures taken by the Government of India during 2011".

Mr Mehta also mentioned the low cost and innovativeness of the Indian manufacturers will be of great help to Canada which is now looking towards countries beyond NAFTA for trade expansion.

Mrs. Preeti Saran, the Consul General of India also attended the event. While delivering her keynote address she was hopeful that these events could lead to double digit growth in trade between the two countries.

Mr Mario-Ste-Marie, Acting High Commissioner, High Commission of Canada in New Delhi was also present. EEPC INDIA with the support of Indian High Commission at Ottawa and Canadian High Commission in New Delhi are organizing the next edition of the "India Show" at Toronto, Canada. "India Show" Toronto, Canada is being organized at most opportune time with Year 2011 being declared as the "Year of India in Canada" by Indian Prime Minister Dr. Manmohan Singh and his Canadian counterpart Mr. Stephen Harper, during the latter's visit to India in November 2009.

Indo Canadian bilateral trade stands at CAD 5 billion at present and is expected to increase to CAD 15 billion in the next 5 years.
Ms Preeti Saran in her address informed that Canadian businessmen are keen in partnering with Indian counterparts for trade, business and joint venture opportunities.

She further added that Toronto on its own holds a crucial status in Canada's overall economy. Shri Arvind Mehta indicated that North America and Europe have been the traditional focus markets for India's engineering exports, contributing 31.07 percent share.

He also stated that the signing of Comprehensive Economic Partnership Agreement (CEPA) between India and Canada will help to strengthen the economic and commercial ties between the two countries.

Mr Anupam Shah, Vice Chairman, EEPC India announced that India has been declared as the "Strategic International Partner" during the "Canadian Manufacturing Technology Show" being organized by the Society of Manufacturing Engineers (SME-Canada).

EEPC India proposes to take over 130 Indian engineering companies from Large, Medium and Small Scale Enterprises to the Show.

Mr. R Maitra, Executive Director, EEPC India stated that he is confident that the "India Show" Toronto, Canada will spark the trade and investment relations between India and Canada in both the directions.

The overall aim of the show is to forge ties of Indian manufacturers and entrepreneurs with their counterparts in Canada in areas such as manufacturing, technology transfer, research and development, investments, sourcing and sub-contracting, he added.

The engineering exports which are to the tune of US$ 60 billion in 2009-10 contribute a fifth of India's total exports. However, it is significant that although USA accounts for 10.72 percent of India's total engineering exports, Canada contributes only 0.56 percent.

In fact, the total exports of engineering goods and services to Canada were to the tune of 373 Million dollars which is 0.28 percent of total imports of Canadian engineering basket. The exposition, therefore, at this stage will be very significant and will be a starting point to a gradual rise in exports to Canada.

In fact, a target is set to achieve US$ 1 billion exports of engineering goods and services to Canada by the year 2013-14.

EEPC India aims to achieve substantial rise in trade for engineering goods and services by doing two back to back events sanctioned by the Government of India. The first one would be India Show in Toronto coinciding with the most famous engineering show in Canada (CMTS) from October 17 to 20, 2011 and it will be followed by another mega show in Mumbai which will be from March 22 to 24 , 2012.

Thesynergyonline Economic Bureau

NEW DELHI, JUNE 24 :
INDUSTRY body ASSOCHAM  has called for raising the permissible limit on foreign direct investments in strategic defence sector from 26 per cent to 49 per cent for better technology transfers and building domestic capabilities.

The government should also support setting up defence special economic zones to help create an industrial ecosystem for strengthening manufacturing activities in the country, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“Incentives may also be given to establishments in such SEZs to boost export to neighbouring countries,” it said in a set of suggestions for the working group on defence and aerospace industry under the Planning Commission for 12th Five Year Plan (2012-17).

The large defence purchase orders and contracts to foreign original equipment manufacturers have created large offset obligations, churning out huge business opportunities for small and medium enterprises. Offset obligations worth Rs 150,000 crore are to be fulfilled in the next five to six years.

The government may consider an option of providing 25 to 30 per cent reservation to SMEs in defence orders, said vice admiral (retd) P.C. Bhasin who is chairperson of ASSOCHAM national defence council.

Cluster development on public private partnership model with focus on defence, electronics and homeland security manufacturing of equipment and components should be pursued, he said. “A dedicated fund of Rs 400 crore may be created to support research and development work by the private sector.”

ASSOCHAM secretary general D.S. Rawat called for close coordination between the ministry of defence and other ministries like that of communications and information technology which is also making a serious effort in expanding the manufacturing base.

He said raising the FDI limit in defence sector to 49 per cent will allow foreign firms a larger share of risks and profits, and the confidence to transfer sensitive technologies to joint ventures in India.

ASSOCHAM also proposed infrastructure sharing for developing innovative technologies and select products between the Defence Research and Development Organisation and the private sector.

Thesynergyonline Export Bureau

NEW DELHI, JUNE 15 :
SPECIAL Economic Zones after enactment of SEZ Act 2005 registered record growth of 43.11 percent in exports in 2010-11 (Rs. 3,15,868 crore). Total employment generated is 6,76,608 with a total investment of Rs. 2,02,810 crore. The manufacturing sector SEZs exported goods worth Rs. 1, 94,941 crore.

Out of 584 formally approved SEZs, 378 has been notified and 133 started exports. The above performance is only from 23 percent of SEZs approved. The potential of higher exports, accelerated employment generation and investment from balance 451 SEZs would be of much higher magnitude.

While the manufacturing sector as a whole shows considerable decline, the manufacturing sector SEZs shows commendable growth. The growth can be attributed to the tax concessions and administrative support given in the SEZ policy.

Unexpected imposition of MAT @ 18.5 percent and DDT @ 15 percent on SEZs forced the approved SEZs to review their business plan. Uncertainty in tax laws and going back from the commitment of tax exemption would result into lack of credibility in the minds of investors. It affects progress of project implementation adversely. Due to imposition of MAT & Direct Tax Code,

Fifteen SEZs viz., Satyam Computer Service, MIDC, S2Tech.com, Mansarovar Indl Development Corporation, Bengal Shapoorji Infrastructure Development, K. Raheja Universal, Lahari Infrastructure, Shivajimarg Properties, DLF Ltd (3 SEZs), TCG Urban Infrastructure Holdings, Essar SEZ Hazira, Omnibus Industrial Development Corpn, SIDCUL, are considering for de-notification.

Many more SEZs, who are yet to commence commercial activities may withdraw from the scheme as they are now put on par with any DTA sector who enjoys more operational freedom. With the imposition of MAT & DDT fresh proposals to set up SEZs are not coming up. This would hurt growth of exports, employment and investment very badly.

SEZs have been a growth engine of Indian Economy and it needs to be supported not with fresh sops at least by providing exemptions as promised when they sought approval to set up SEZs.

Thesynergyonline Export Bureau

NEW DELHI, JUNE 11 :
APEX industry chamber ASSOCHAM on Saturday called for integrating various government schemes for exports of food and agricultural products besides improving market intelligence systems so that collaborative efforts can be synergised to develop greater national and international linkages.

There are many overlaps in schemes offered by various ministries and departments, and they lack supply chain approach, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Incentives offered by the Agricultural and Processed Food Products Export Development Authority (APEDA), the Marine Products Export Development Authority (MPEDA), the Coffee Board, the Tea Board, the Spices Board, the Cashew Export Promotion Council, the Export Inspection Council and others need to be aligned to ensure that all issues hindering exports are tackled comprehensively.

"It is critical to have consistency in export promotion policies," said ASSOCHAM secretary general D.S. Rawat. "The focus should be on commodities where India has marketable surplus and competitive strength in global markets."

After the dismantling of quantitative restrictions on imports, one of the major challenges for Indian exporters is to raise the level of productivity and quality standards to internationally competitive levels. Regulatory agencies worldwide have focused their attention on ISO guidelines for code of conduct and a specific system for the food industry known as Hazard Analysis and Critical Control Points (HACCP).

Indian exporters also lack resources to invest in developing a dynamic market information system, said Mr Rawat. "To focus on some key products and markets, it is necessary to develop a strong database to identify India's competitiveness vis-à-vis major competitors."

He recommended setting up a special cell under the ministry of food processing to determine current status of quality standards and food regulations in target markets. The cell should also examine existing tariff structure and non-tariff barriers besides likely changes in the context of WTO requirements.

India's food and agriculture exports were valued at 15.7 billion dollars in 2009-10, down nine per cent from 17.2 billion dollars in the previous year. Agriculture and related activities account for employment to 60 per cent of the population, 19 per cent of the GDP and nine per cent of total exports.

Despite good agro-climatic conditions and vast geographical area, the country's share in global food trade is just 1.38 per cent.

"Exports have the potential of transforming agriculture with technological innovations and bring about considerable improvement in economic conditions of farmers, leading to a direct impact on overall economic growth," said Mr Rawat.

He also suggested encouraging contract farming by the private sector with fiscal benefits, land reforms, scaling up storage facilities, adoption of profitable crop technologies and protection of bio-diversity to develop agriculture infrastructure.

Thesynergyonline Export Bureau

NEW DELHI, JUNE 10 :
INDIA’S  exports have registered a growth of 56.9 percent in May 2011, at US $ 25.9 billion. Interacting with the mediapersons here on Friday  Mr Rahul Khullar, Commerce Secretary, informed that during the period April-May 2011, exports have reached a level of US $ 49.8 billion at a growth of 45.3 percent while the imports were US $ 73.7 billion with a growth of 33.3 percent and a trade deficit of US $ 23.9 billion, during the same period. He also informed that India’s imports in May 2011 were US $ 40.9 billion.

He further clarified that the import figures are only the rough estimates and the final figure is subject to change. Balance of trade for the month of May 2011 stood at – 15 billion US dollar. 

On the export growth, he  expressed happiness over the export performance which is all time high at the same time he was concerned about the surge in imports. 

During April-May 2011, the following sectors have done well viz., engineering, 115 percent (US $ 14.7 billion); Gems & Jewellery, 23 percent (5.7 billion US $); petroleum and  oil products, 64 percent (US $ 8.8 billion); cotton yarn and  made-ups, 10.4 percent (US $ 1.04 billion); electronics, 80 percent (US $ 1.83 billion) and marine products, 15.8 percent (0.4 billion). 

He stated that exports of iron ore, fruits and vegetables and tobacco are on the negative growth because of ban on exports on these sectors. 

As regards imports during April-May 2011, the growth estimates on the following sectors are: POL, 12.9 percent (US $ 20.3 billion); pearls and precious stones, 24.6 percent (US $ 5.2 billion); gold and  silver, 222 percent (US $ 13.5 billion); iron and steel, -13 percent (US $ 1.8 billion) and machinery, 46.7 percent (US $ 5.9 billion) .

Thesynergyonline Exports Bureau

NEW DELHI, MAY 18 :
THE Minister of State for Commerce Mr Jyotiraditya M. Scindia presented the EPCES Export Awards to EOUs and SEZ Units for Outstanding Export Performance for 2008-09, here on Wednesday .

Mr Scindia said on the occasion, "The exports from SEZs in 2010-11 is to the tune of Rs.3, 15,867 crore, representing a growth of 43 percent over the previous year".

He further said that the contribution of exports from SEZs to national exports during 2010-11 is 28 percent.

The SEZ sector is providing employment to 6,76,608 people in the country as on March 31 , 2011. The total investments in SEZs are Rs.2,02,810 crore as on March 31 , 2011.

The SEZ Council was set up in January 2003 and the Council recognize the efforts of EOUs and SEZ Units by presenting Export Awards for their excellent performance in exports every year since inception. . 

Mr Jatin R. Mehta, Chairman, EPCES while addressing to the award winners informed that EPCES is a scheme specific multi-product Export Promotion Council and Council recognize the export efforts in fields of gem and jewellery, engineering, plastic products, electronic, computer hardware, services, readymade garments, handicrafts, chemical and allied products, textile products, food products etc.

These awards were presented for the export performance in the year 2008-09 to 48 awardees and some of the award winners are M/s Nokia India ., (Rs.10,317 crore), Rajesh Exports . (Rs.10,453 crore), Suzlon Wind Corpn.. (Rs.1554 crore), Su-Raj Diamonds & Jewellery . (Rs.1230 crore ), Jindal Saw (Rs.1520 crore), Moser Baer India (Rs.1316 crore), Hindustan Zinc . (Rs.1315 crore), Infosys (Rs.1123 crore) etc. 

Thesynergyonline Exports Bureau

WASHINGTON ,MAY 11 :
US exports set a record in March, buoyed up by the weak US$ and strengthening global demand as US trade flows returned to levels last seen before the global financial crisis.

US exports grew 4.6 percent in March to $172.7 billion, surpassing the record set in July 2008 before world trade took a sharp downturn.

The March export rise was the biggest month-to-month gain in 17 years, the Commerce Department said in a report on Wednesday.

"It's taken two-and-a-half years, but the level of exports has finally returned to pre-recession levels," said Paul Dales, senior U.S. economist with Capital Economics in Toronto.

Despite the big gain, the US trade deficit grew to $48.2 billion in March, the widest since June 2010, as rising oil prices helped push imports nearly 5 percent higher.

Dales said he doubted the wider-than-expected trade gap in March would meaningfully worsen estimates of already weak first-quarter U.S. economic growth.

"More generally, the latest surveys suggest that export growth will continue to accelerate, with the lower dollar providing further support. But the surveys suggest that imports will continue to grow at a faster rate," Dales said.

Both US goods and US services exports set records in March, as did two sub-categories - foods, feeds and beverages and industrial supplies. U.S. exports to Canada and South and Central America also set records and exports to the European Union were the highest since July 2008.

A weaker dollar helps US exports by making them cheaper in world markets. The dollar has fallen 5.2 percent against a basket of currencies since the beginning of the year. Against the euro, the dollar has been down nearly 7 percent so far this year.

Imports grew 4.9 percent to $220.8 billion as the average price for imported oil hit $93.76 per barrel, the highest since September 2008. Oil prices continued to rise in April, but have receded in recent weeks back to early March levels.

Pierre Ellis, senior global economist at Decision Economics in New York, said the trade data could provide ammunition for members of the Federal Reserve board that want to tighten monetary policy to curb the threat of inflation.

"This is a reassurance on growth, which is what the hawkish members of the Fed are looking for. This is a piece of evidence for them to consider removing accommodation before things start overheating a couple of years down the road," he said.

US imports were the highest since August 2008, just as the global financial crisis was beginning to bite into trade. Imports hit a record $232.1 billion in July 2008, before tumbling sharply over the next six months.

US petroleum imports were also the highest since August 2008 and the U.S. petroleum trade deficit was the widest since October 2008.

The closely watched U.S. trade deficit with China narrowed slightly in March to $18.1 billion, as U.S. exports to that country grew faster than imports from the Asian giant.

However, the trade shortfall with China for the first quarter of 2011 totaled $60.2 billion, putting it on a pace to exceed last year's record of around $273 billion.

China's own data this week showed it posted its biggest surplus in four months in April, as exports hit a record on stronger global demand.

US and Chinese officials sparred over China's exchange rate policies during high-level talks this week in Washington.

The United States pressed for a faster rise in the yuan's value to help bring trade into balance, while China said it would continue exchange rate reform at its own pace.

Thesynergyonline Exports Bureau
 

NEW DELHI, MAY 09 :
THE Government has formally approved 584 SEZs.  Out of which, 377 SEZs have been notified as on 4.5.2011 and 133 SEZs are in operation as on March 31, 2011, informed Mr O.P. Kapoor, Dy.Director General, Export Promotion Council for EOUs and SEZs (EPCES).
     
Mr Jatin R Mehta, Chairman, EPCES has expressed happiness over the growth of exports from SEZs and informed that exports from SEZs during the year 2010-11 is to the extent of Rs3,15,867.85 crore with a growth of 43.11 percent over the previous year.

 Mr Mehta further informed that the total investments in SEZs as on March 31 , 2011 are to the extent of Rs 2,02,809.54.  The SEZ sector has provided employment to 6,76,608 persons as on March 31 , 2011.

He further  informed that Council also recognizes  the export efforts of EOU/SEZ Sector for their excellent export performance by presenting EPCES export awards to best EOUs and SEZ Units. 

Mr Jyotiraditya M Scindia, Minister of State for Commerce & Industry will present the EPCES export awards to EOUs and SEZ units on May 18, 2011 in New Delhi.

Thesynergyonline Exports Bureau

NEW DELHI, APRIL 06 :
IN a bid to give an impetus to project exports from India the Union Commerce and Industry Minister, Mr Anand Sharma on Wednesday launched ‘Buyer’s Credit Under the NEIA’ a new product that will enable Indian companies to be in a competitive position vis-a-vis peers from other nations in project bids.

Sovereign Governments and Government owned entities overseas can use the Buyer’s Credit facility for financing import of projects from India on deferred payment terms. The scheme has been developed by Export-Import Bank of India (EXIM Bank) in conjunction with the Export Credit Guarantee Corporation of India Ltd. (ECGC).

While launching Buyer’s Credit under NEIA, Mr Sharma said, “Currently, not many project exports are venturing out in overseas markets. In fact, the number of project exporters is dwindling. There is vast scope for diversification of markets for project exports from India and for enhancing project export business into the existing market."

"Developing countries are the major markets for India’s project exports, and these countries demand medium to long-term credits. With the introduction of this new product, I am sure, many project exporters would be in a position to venture into new markets, and help diversify India’s exports,” he added..

EXIM Bank Chairman and Managing Director, Mr T.C.A. Ranganathan said, “The product with its attractive feature of extending credit directly to overseas buyers of projects from India without recourse to Indian exports, will lead to a substantial rise in exports from India. Credit period would normally be 5 to 8 years, however, longer credit period could be considered in deserving cases.”

Explaining the features of the product ECGC chairman and managing director Shri Arvind Mehta said, “While EXIM Bank will extend the credit facility, it will obtain credit insurance cover under NEIA through ECGC and the insurance premium will be borne by the project exporter.”

Thesynergyonline Exports Bureau

H E Mr.Juan Carlos Varela, Vice-President of Panama (Centre). From L to R: H.E.Mr Vishnu Hade, Ambassador, Embassy of India, Panama (5th from left). From R to L: Mr O.P. Kapoor, Dy.Director General, EPCES (5th from right), Mr Raj Kumar, Second Secretary, Embassy of India, Panama (2nd from right) at reception held at Embassy of India, Panama.

NEW DELHI, MARCH 31 :
EXPORT Promotion Council for EOUs and SEZs (EPCES) along with its member EOUs/SEZ units from different parts of India participated in EXPOCOMER exhibition at Panama (LAC) held from March 23 to 26, 2011 .

The fair was organized by Camara de Comercio, Industrias y Agricultura de Panama, Panama. Expocomer is a multi-products trade fair where a wide range of goods and services from food to textiles and high technology and heavy equipment have been presented. Panama is a gateway to Latin American countries.
 
In this fair, 35 countries including India, China, Brazil, Mexico, Taiwan, Columbia and Korea and 500 business organizations from all over the world participated in exhibition.

Mr.Carlos Rodriguez, president of the Organising Committee informed that direct contributions to the country’s economy during the duration of the fair would be reaching $ 30 million and commercial transactions are expected to exceed $ 120 million and the fair was the most important business event in the Panama. India was represented by 50 Indian exporting companies by displaying their products during exhibition.
 
The Indian Pavilion was inaugurated by Mr.Carlos Rodriguez, President, Camara de Comercio, Industrias y Agricultura de Panama, Panama. H.E.

Mr.Vishnu Hade, Ambassador, Embassy of India, Panama said that 50 Indian companies from different parts of India are participated in the fair and displayed their products. He said that participation of Indian companies would increase exports to Latin American countries.
 
Mr O.P. Kapoor, Dy.Director General, EPCES informed about the SEZ Scheme of India and informed that Government of India has formally approved 582 SEZs. Out of which, 374 SEZs have been notified and 130 SEZs are in operation.

He further mentioned that there are 4600 operational EOUs and SEZs in India and during the year 2009-10 the exports of EOU/SEZ was US $ 63 billion with a contribution of 36 percent to national exports. This sector is also generating employment to 8,04,442 people in the country and investments worth Rs.2,25,772 crore have been made in SEZs.
 
H.E. Mr.Vishnu Hade, Ambassador, Embassy of India, Panama met all Indian participants individually and assured them fullest cooperation of Embassy of India in their efforts to increase exports to Latin American countries.

H E Mr.Juan Carlos Varela, Vice-President of Panama assured fullest cooperation of Panama in increasing trade between India and Panama.
 
Mr O P Kapoor, Dy DG, EPCES, informed that in the exhibition, the members of EPCES had good opportunities for one-to-one meetings with foreign buyers. He further mentioned that the members of EPCES had positive response for exports to Latin American markets and hopes to finalise their export orders.

Thesynergyonline Exports Bureau

NEW DELHI, MARCH 17 :
IN the Union Budget 2011-12 MAT/DDT has been imposed on SEZ Developers and SEZ Units @ 18.5percent on the book profits of SEZ Developers and SEZ Units.

Mr Ajay Nijhawan, Convenor, Panel on SEZ Developers has informed that Export Promotion Council for EOUs and SEZs (EPCES) has submitted representations to the Finance Minister, the Minister for Commerce & Industry, the Minister of State for Commerce & Industry, Commerce Secretary and Chairman, Parliamentary Standing Committee on Finance and DTC for withdrawal of MAT/DDT from the Union Budget 2011-12.

He further informed that Ministry of Finance has introduced Direct Tax Code (DTC) Bill in the Parliament and the same has been referred to the Parliamentary Standing Committee on Finance and DTC, headed by Shri Yashwant Sinha.

EPCES is likely to meet Mr Yashwant Sinha, Parliamentary Standing Committee on Finance and DTC to highlight implications of imposition of MAT/DDT on SEZ Developers and SEZ Units in Union Budget 2011-12.

He said that EPCES has also met Mr Jyotiraditya M. Scindia, Minister of State for Commerce & Industry and highlighted the issue of MAT/DDT.

Mr Jyotiraditya M. Scindia, Minister of State for Commerce has informed that SEZ Sector is doing well for the last 10 years and the total physical exports from SEZs in the first three quarters of the current financial year has been to the tune of Rs 2,23,132 crore, registering a growth of 46.7 percent over the exports of corresponding period of the previous year.

He said that a total of 130 tax free enclaves are currently exporting goods. This include seven central government SEZs and 12 State/Private Sector SEZs set up prior to the enactment of SEZ Act, 2005. SEZs have emerged as major route for attracting investments and increasing exports. The SEZs contributed about one-fourth to the country’s overall exports.

The Minister of State for Commerce & Industry said that as on December 2010, Rs.1,95,348 crore has been invested in SEZs and the total direct employment has been generated for 6,44,073 persons.

Shipment from SEZs increased by 121 percent to Rs 2,20,711 crore in 2009-10 over the corresponding period last year. SEZ units are eligible for 100 percent tax exemption for first five years and 50 percent for the next five years. The developers of the zones also avail 100 percent income tax exemption for 10 years.

Mr Nijhawan urged the Government to consider the demand of SEZ Units and SEZ Developers, who are generating employment , attracting foreign and domestic investments and increasing exports from India to withdraw the imposition of MAT/DDT in the Union Budget 2011-12.

Thesynergyonline Exports Bureau

NEW DELHI, MARCH 14 :
THE trade and investment between India and the UK are on the rise as reflected in the April-September 2010 figures where exports to the UK registered a growth of 10.88 percent over the corresponding period of the previous year, said Mr Anand Sharma, Union Minister for Commerce & Industry, at bilateral meeting with Lord Green, UK Minister of State for Trade and Investment here on Monday.

He expressed satisfaction over the negotiations with the EU for a broad-based Trade and Investment agreement (BTIA) with 12 rounds having been completed till January 2011.

He emphasized that, “India is one of the most promising destinations for foreign direct investment and hoped that free movement of professionals and service providers will help in deepening the economic relationship.”

Mr Sharma highlighted that the JETCO (Joint Economic & Trade Committee) has been working successfully with government and business working together to enhance bilateral trade and investment. Both the Ministers lauded efforts of India-UK CEOs Forum.

The CEOs Forum will make recommendations to the two governments on how to increase the levels of trade and investment in each other’s economies. The Forum has ten members on each side, led by Mr. Rattan Tata.

UK is the fourth largest investor in India with FDI from UK totaling US $ 6.23 billion and in this year (April to October) it has been US $ 0.66 billion. Trade between the two countries in 2009-10 was US $ 11 billion with exports from India to UK were valued at US $ 6.2 billion and imports from UK to India at US $ 4.4 billion.

India’s major exports to the UK are RMG cotton including accessories, transport equipments, machinery and instruments, gems and jewellery, drugs, pharmaceuticals and fine chemicals.

India’s major imports from the UK are: Pearls, precious and semi-precious stones, machinery except electric and electronic, metalifers ores and metal scrap, transport equipments and electronic goods.

Thesynergyonline Exports Bureau

NEW DELHI, MARCH 11 :
A meeting of SEZ Developers, Panel on SEZ Developers was held here recently to discuss implications of imposition of MAT/DDT on SEZ Developers and SEZ Units in the Union Budget 2011-12.

A large number of leading SEZ Developers including representatives of ONGC, Reliance Haryana SEZ, Gurgaon, DLF New Delhi, Mahindra World City SEZ,Jaipur, Unitech , New Delhi Gitanjali Group, Hyderabad, Phonenix Group, Hyderabad, Rajasthan State Industrial Development and Investment Corporation (RIICO), Jaipur, K.Raheja, Mumbai, Uppal Developers etc joined the meeting.
 
Mr P.C. Nambiar, vice-chairman, EPCES said that Ministry of Finance has introduced Direct Tax Code (DTC) Bill 2010 in the winter session of Parliament and the same has been referred to the Parliamentary Standing Committee on Finance, headed by Mr Yashwant Sinha.

The Finance Minister’s announcement, while presenting Union Budget 2011-12, to impose MAT/DAT both on SEZ Developers and Units has come as a shock.
 
Mr Ajay Nijhawan, Convenor, Panel on SEZ Developers said that in miscellaneous provisions section of the current Finance Bill, Schedule II of SEZ Act is sought to be amended. He further said that the reason IT provisions applicable to SEZ's are enshrined in SEZ Act is to ensure IT does not unilaterally amend the IT provisions on the matter.

 Mr Nijhawan further said that SEZ Act should not have been sought to be amended without taking views and approval of Ministry of Commerce.
Mr Nijhawan further informed that representations have been submitted to the Finance Minister, Minister for Commerce & Industry, Minister of State for Commerce & Industry, Commerce Secretary.

He further informed that a high powered delegation of SEZ Developers is seeking appointments with Mr Yashwant Sinha, Chairman, Parliamentary Standing Committee on Finance to give an opportunity for making presentation and highlight the impact of imposition of MAT/DDT.

The implementation of MAT/DDT will affect India’s exports adversely since this sector is contributing 36 percent to the national exports. The implementation of MAT/DDT will also discourage foreign & domestic investments and generation of employment for the country.
 
Mr O.P. Kapoor, Dy.Director General, EPCES informed that in the first 3 quarters of current financial year (April-December, 2010) exports from SEZs have shown a growth of 47 percent over the corresponding period of last year. The total exports from SEZs during April-December 2010 is to the extent of Rs.2,23,132 crore against the exports from SEZs of Rs 1,51,785 crore against the same period in 2009-10.

The Government has formally approved 582 SEZs. Out of which, 374 SEZs have been notified as on February 17 , 2011 and 130 SEZs are in operation as on December 31 . 2010.

Thesynergyonline Exports Bureau

NEW DELHI, MARCH 10 :
INDIA'S exports have registered a growth of 49.8 percent during February 2011, at US $ 23.6 billion. Interacting with the mediapersons here on Thursday, Mr Rahul Khullar, Commerce Secretary, informed that during the period April-February 2010-11, exports have reached a level of US $ 208.2 billion at a growth of 31.4 percent while the imports were US $ 305.3 billion with a growth of 18 percent and a trade deficit of US $ 97.1 billion.

Mr Khullar informed that India’s imports in February 2011 were US $ 31.7 billion. He further clarified that the import figures are only the rough estimates and the final figure is subject to change. Balance of trade for the month of February stood at US$ 8.1 billion..

On the export growth, Mr Khullar said that we have crossed $ 200 billion during February and our forecast for this fiscal would be around $ 235 billion. He also stated that exports from the Special Economic Zones (SEZs) are doing very well and it is expected a huge growth from SEZs.

During April-February 2011, the following sectors have done well viz., engineering, 81 percent ($ 52.7 billion); gems and jewellery, 5.4 percent (26.9 billion); POL, 34 percent ($ 32.9 billion); RMG, 2 percent ($ 10 billion); manmade fabrics, 14 percent ($ 3.7 billion); cotton yarn, 43 percent ($4.9 billion); electronics, 40 percent ($ 7 billion) plastics, 41 percent ($ 4.1 billion); chemicals, 22 percent ($ 7.5 billion); pharmaceuticals, 15 percent ($ 9.1 billion); carpets, 37percent ($ 0.9 billion); leather, 11 percent ($ 3.3 billion); and marine products, 20 percent ($ 2.3 billion).

He informed that exports of cotton yarn, iron ore and fruits & vegetables are on the negative growth because of ban on exports on these sectors.

As regards imports during April-February 2011, the growth estimates on the following sectors are POL, 12.5 percent ($ 88.2 billion); pearls and precious stones, 55 percent ($ 22 billion); gold and silver, 13.4 percent ($ 28.6 billion); fertilizers, 6 percent ($ 6.9 billion); vegetable oils, 18 percent ($ 6 billion); machinery, 19 percent ($ 24.3 billion); electronics, 5.6 percent ($ 20.1 billion); organic and inorganic chemicals, 25 percent ($ 13.4 billion); coal, 12 percent ($ 9.2 billion); iron & steel 29 percent ($ 9.7 billion); and ores and scrap, 31 percent ($ 9 billion).

Thesynergyonline Economic Bureau

NEW DELHI, MARCH 09 :
EUROPEAN Union (EU) has been raising protective barriers against textiles and garments exports from India through various non- tariff barriers such as Labelling Certification and REACH (Registration, Evaluation, Authorisation and Restriction of Chemical Substances).

This was informed by Mr Jyotiraditya M Scindia, Minister of State for Commerce and Industry.

To ensure that Indian exports are not denied market access, particularly in Europe and other places; Department of Commerce and Ministry of Textiles have been raising the issue of protective barriers in the India-EU Sub-Commission on Trade.

These issues will also be taken up with the EU in the next meeting of the India-EU Joint Working Group on Textiles and Clothing (T&C). Ministry of Textiles has also mooted the idea of developing and implementing a Common Compliance Code incorporating all social compliance issues to empower the T&C industry with adequate compliance information and to train the industry to make itself compliant with these norms.

SEZ EXPORTS UP 47% IN 3 QUARTERS

Thesynergyonline Exports Bureau

NEW DELHI, FEBRUARY 24 :
THE Government has formally approved 582 SEZs. Out of which, 374 SEZs have been notified as on 17.2.2011 and 130 SEZs are in operation as on 31.12.2010, informed Mr O P Kapoor, Dy.Director General, Export Promotion Council for EOUs and SEZs (EPCES).
 
Mr Jatin R. Mehta, Chairman, EPCES expressed happiness and informed that in the first 3 quarters of current financial year (April-December, 2010) exports from SEZs have shown a growth of 47 percent corresponding period of last year. The total exports from SEZs during April-December 2010 is to the extent of Rs.2,23,132 crore against the exports from SEZs of Rs.1,51,785 crore against the same period in 2009-10.
 
Mr ehta further informed that total exports from SEZs during April-December 2010 is Rs.2,23,132 crore whereas total exports from SEZs during 2009-10 was Rs.2,20,711 crore.

Mr Jatin Jatin R. Mehta, Chairman, EPCES informed that the total employment provided in SEZs as on 31.12.2010 is 6,44,073 persons whereas employment provided in SEZs as on 31.3.2010 was 5,03,611 persons. As such, additional employment of 1,40,462 persons has been generated in the first 3 quarters of current financial year.
 
The total investments as on 31.12.2010 is Rs.1,95,348 crore and the total investments in SEZs as on 31.3.2010 was Rs.1,48,488 crore. In other words, additional investments of Rs.46,860 crore have been made in the first 3 quarters of the current fiscal year.
 
Chairman, EPCES informed that EOUs and SEZs are engines of economic growth and are complimentary to each other. The share of EOU/SEZ sector to national exports is 36% during 2009-10. He is confident that the forthcoming Union Budget 2011-12, to be presented by Mr PranabMukherjee, Finance Minister, will be exporter-friendly budget so that EOU/SEZ sector is able to achieve more and more exports for India .

INDIA'S EXPORTS TO TOUCH US$ 450 BILLION BY 2014

Thesynergyonline Exports Bureau

NEW DELHI, FEBRUARY 23 :
INDIA'S exports will touch US $ 450 billion by 2014 and the exports during 2010-11 will reach US $ 225 billion, said Mr Anand Sharma, Union Minister of Commerce & Industry, while releasing the draft strategy paper for doubling exports, here today .

Interacting with the mediapersons on this occasion, Mr Sharma said this strategy would accelerate the growth of exports so as to keep the trade deficit within manageable bounds. Dr Rahul Khullar, Commerce Secretary, informed that the strategy paper is prepared mainly for increasing our exports and to double the same by 2014.

As regards engineering sector, Mr Sharma said that engineering sector has done considerably well and now need to move up the value addition chain for high value precision engineering both for domestic production and exports.

He added that together with the Engineering Export Promotion Council (EEPC), we have set ourselves a target of tripling engineering exports of US$ 120 billion by 2015.

The Minister informed that “we are uploading the Draft Strategy Paper on the website to invite comments and suggestions from all stakeholders. The paper represents work in progress and is a first draft. We are requesting all respondents to give us their comments by 23.03.2011 so that we can move forward and finalise the Strategy paper before the close of the fiscal year”.

The strategy for export promotion hinges around 4 key elements. At first level, there is a product strategy where clearly we need the build on the intrinsic strengths of our industry such as engineering and chemicals.

The pharmaceutical industry which has largely been dominated by generic so far has the prospect of great expansion not just in terms of the expansion of space of generics as such, as more and more medicines go into the sunset clauses of IPR, but also in collaborative research and new drug discoveries.

Mr Sharma said , “We have constituted a group of Government and industry to come out with a clearly defined roadmap and strategy on how to occupy the space which is emerging on the horizon. The electronic hardware industry is an area in which we have so far not yet reached our true potential and it is my belief that as our engagement with the world increases, we will be able to facilitate the establishment of electronic hardware manufacturing facilities for the export market in India”.

Leather products and textiles not only generate tremendous employment and have a high value addition but have been sources of traditional strengths. In the leather sector, “it shall be our endeavour to ensure diversification of product based and move into high value added products specially the high end fashion shoes in the developed world and similarly, in the textiles, we would like to give a focused attention on specialized niche markets which would add to our export potential”, the Minister said.

Gems and Jewellery sector though has relatively low value addition but has contributed to employment needs to get sustained support. In the larger agri-export business, Shri Sharma said that we have strengths in certain plantations which would be given a focused attention as would marine products and organic products for which new markets are emerging specially in the developed world and added that in the iron ore exports we would like to incentivise value addition rather than exporting the raw material.

A second pillar would be a strategy of market diversification as in the coming years, the developed world is unlikely to see high growths and strong demand. There is a clear rebalancing of the global economic order underway and markets in Asia, Africa and Latin America will certainly have far greater potential.

“Therefore, in the last 1½ years we have stepped up our engagement with the countries of East Asian region after signing the Free Trade Agreement with ASEAN, CEPA with Japan, Malaysia and Korea and we have initiated action for similar agreements with New Zealand and Indonesia. With Europe, I am hopeful that in the next few months, we will see a conclusion of a deal and we would step up our deals with the MERCOSUR countries and the countries of African region”, the Minister highlighted.

A third pillar of the strategy would be the support used for technology and R&D. The Minister said that we will specially give support and incentive to pharmaceutical in the market, to electronics for establishment of at least one fabrication facility over the next three years.

For automobile sector, in upgrading to the medium car segment, in computer and software based smart engineering apart from environmental goods to the green technologies and the area of high technology including space and engineering.

Lastly, Mr Sharma informed that “we also will give a focused attention in building a Brand India which would need strengthening of quality enforcement regime through BIS, Export Inspection Council and our export promotion councils will be tasked with building a brand strategy which will resonate in the global markets."

"On the whole, by 2014 we would like to see doubling of our exports in Textiles, tripling of our exports in gems and jewellery and engineering, tripling of exports in electronics goods, doubling our agri-exports and tripling our leather sector exports”, he added. 

EXTEND SUNSET CLAUSE FURTHER FOR EOU SECTOR : EPCES

Thesynergyonline Exports Bureau

NEW DELHI,FEBRUARY 23 :
EXPORTS from EOU sector in 1981-82 was to the extent of Rs.9 crore, which has increased to Rs.1,71,498 crore in the year 2008-09 and decreased to Rs.83,700 crore in 2009-10. The reason for this decrease was exit of some prominent EOUs from the Scheme i.e.Reliance Industries , Jamnagar with an export turnover of Rs 70,000 crore. This sector has provided employment to 3,00,830 persons and investments worth Rs 77,284 crore have been made by EOUs, informed Mr O P Kapoor, Dy.Director General, EPCES.

He further informed that EOU Scheme has been contributing immensely in the last 30 years in creating manufacturing capabilities in the country, increasing exports, employment generation and value addition in the country.

EOU Scheme needs to be nurtured further for encouraging creation of further dedicated manufacturing activities for exports. Apart from an impressive contribution to the foreign exchange earnings, this sector is making a distinctive contribution to national, regional and sub-regional development of the country.

Ministry of Commerce & Industry, Government of India has constituted a Committee under the chairmanship of Mr S.C. Panda, Development Commissioner, Noida SEZ to review/revamp/remodel EOU Scheme in view of changing global business environment and challenges and its impact on various sectors and to suggest suitable steps for improving EOU Scheme. The other members of the Committee include Dr L B Singhal, Jt.DGFT, Mr S C Sinha, Jt Director, Deptt of Revenue and other officers.

The meetings of the said Committee have been held at Bangalore, Chennai and Mumbai to take feedback from industry. The Committee will also meet on February 28, , 2011 at Noida SEZ to take feedback from EOUs from Northern Region.

Thesynergyonline Exports Bureau

NEW DELHI, FEBRUARY 11 :
INTERACTING with the mediapersons here today, Mr Anand Sharma, Union Minister of Commerce & Industry, announced further export incentives for more than 600 products effective January 1, 2011 in the sectors viz., agriculture, chemicals, carpets, engineering, electronics and plastics, to enhance the competitiveness for products which are labour-intensive and technology intensive.

He informed that the export target of US $ 200 billion will not only easily be achieved but exports will go beyond that. He said that the with the export growth of 25% per annum, the exports will be doubled by 2014. In terms of percentage terms of exports, he said that it will be doubled by 2020. Dr. Rahul Khullar, Commerce Secretary and Dr. Anup K Pujari, Director General of Foreign Trade, were present during the event.

The salient features of these incentives are:

Export Incentives

1.1 Market Linked Focus Product Scheme (MLFPS):

1.1.1 335 New Products incentivised under MLFPS at 8 digit level, eligible for benefits @ 2% of FOB value of exports to 15 specified markets. These markets are Algeria, Egypt, Kenya, Nigeria, Tanzania, South Africa, Ukraine, Mexico, Brazil, Australia, New Zealand, Cambodia, Vietnam, China and Japan.

These include Agricultural Tractors of more than 1800 cc; all inorganic chemicals and inorganic/organic compounds of metals of Chapter 28; Flexible Intermediate Bulk Containers; and Narrow Woven Fabrics.

1.1.2 71 new products of Chapter 63 – Textile Made ups at 8 digit level for exports to EU (27 Countries) under MLFPS have also been incentivised @ 2% of FOB value of exports.

1.2 Focus Product Scheme (FPS):

1.2.1 147 products incentivised for Bonus Benefits (additional 2%) under FPS at 8 digit level, henceforth eligible for benefits @ 4% or 7% of FOB value of exports to all markets.

These include Engineering Items like Galvanized Flanges on Iron and Steel, Threaded Nuts (7%); Ferro & Silico Manganese; Electronic Items like co-axial cables and other co-axial electric conductors, Watches; Stationery items like Pencils, Pens; Textile Items like Silk (of Chapter 50), Grey Rayon Tyre Cord Fabric, and Handmade Carpets and other Floor Coverings under Chapter 57 (7%).

1.2.2 57 New products incentivised under FPS at 8 digit level, eligible for benefits @ 2% of FOB value of exports to all markets.

These include:

· Engineering Items like Industrial Synthetic Foaming Fabric and Electric Discharge Machine Wire (Brass Wire); Laminated Leaf Spring; Plastic Extrusion Plant and Machinery; Parts for Plastic Extrusion machinery; ERW Pipes; Ferro Chrome; Electronic Items like Connectors- Plugs and Sockets; Permanent Magnets and Parts of Electro magnetic Couplings etc.;
· Chemical Items like Danes Salt of D_Phenyl Glycine; Pigments; Articles of Paper Board; Permanent Magnets and Parts of Electro magnetic Couplings etc.; Cobalt unwrought etc.; other cobalt items;
· Paper Products like Articles of Paper Board;
· Rubber Products like Pneumatic Tyres and Pneumatic Inner Tubes;
· Plastic Products like Reprographic films, Bags of Polyethylene;
· Leather items like Chamois Leather;
· Textile Items like Industrial Synthetic Foaming Fabric; Polyester Oriented Yarn, Polyester Staple Fibre, Made-ups of Man Made / synthetic material under Chapter 63;
Miscellaneous items like Human Hair.

1.2.3 Special Focus Products:

1 product (Egg powder) incentivised as Special Focus Product at 8 digit level, eligible for benefits @ 5% of FOB value of exports to all markets.

1.3 Vishesh Krishi and Gram Udyog Yojana (VKGUY):

6 New products (Castor Oil Meal – Defatted Variety and Instant Coffee) incentivised under VKGUY at 8 digit level, eligible for benefits @ 5% of FOB value of exports to all markets.

Procedural Simplifications

2. At the time of the announcement of FTP, I had announced that we shall take concrete measures for reduction of transaction costs. I had constituted a Task Force on transaction costs under the guidance of the Minister of State. The report of the task force has been released by Hon’ble Finance Minister on the 8th February 2011. The report enlists action taken on 23 issues by different line ministries, which is likely to mitigate transaction cost to the tune of Rs. 2100 crores in perpetuity. I am of view that procedural simplification and facilitation is a continuing endeavor on our part. Therefore, over and above the task force initiatives, I announce following further measures for procedural simplification and export facilitation:

2.1 In order to make filing and issuance of IE Code hassle free with minimum human interface between the applicant and the Regional Offices, an additional facility of filing “on-line” application for obtaining IEC is being introduced. A comprehensive “on-line” application filing facility for obtaining IEC is made available on the DGFT’s website. It includes payment of application fee through Electronic Fund Transfer (EFT) and also the provision to attach required documents like photograph of applicant, copy of PAN and bank certificate “on-line”.

2.2 The scope of Advance authorization for Annual Requirement is being enlarged to allow a maximum of five authorizations in a licensing year (instead of only one at present) for the product(s) falling within the same product group. This facility shall be helpful for exporters having multiple manufacturing units, located in one place or having common port of import. This will be useful for all sectors and particularly so for the sectors like Engineering, Textiles, Chemicals etc.

2.3 Technical characteristics / quality etc of certain specified items of imports shall be required to be declared at the time of clearance of import consignment and not at the time of filing application (current stipulation) for annual advance authorization to Regional authority. By this facility, the exporter shall have the flexibility to import the relevant inputs, without the need to approach the Regional authority of DGFT to amend the authorization for clearance of such consignment.

2.4 The period to fulfill the export obligation under advance authorization scheme 36 months from the date of issuance of the authorization. However this period is shorter for products being manufactured from certain duty free imported inputs, which are sensitive from domestic angle. In such cases, the period for fulfillment of export obligation is presently counted from the date of clearance of first import consignment even when a number of consignments have been cleared in different dates. Henceforth, with a view to provide greater flexibility, Export obligation period in such shorter EO period cases of advance authorizations shall be counted from the date of clearance of each consignment and not the first consignment. This will allow a more reasonable time period for EO fulfillment to exporters.

Improving Quality and deepening market access

3. For Indian exports to sustain in long run, it is important that we proceed to build a reputation for the quality of our products and also provide our exporters the necessary flexibilities to be able to face challenges of emerging dimensions of international trade. Our pharmaceutical sector has shown an inherent strength during difficult times. In order that the quality of our pharma product gets recognized world over and to enable them to undertake exports while navigating the challenges posed by intellectual property rights, I announce following initiatives for pharma sector:

3.1 Exporters of pharmaceutical products will be required to affix barcodes on their export products, with effect from 1st July 2011, as per GS 1 global standards, to facilitate tracing and tracking of their products. This will provide assurance about the quality of Indian pharma products to prospective importers.

3.2 We are providing a new facility of Input combination for pharma products manufactured through Non-Infringing process, allowing actual quantum of duty free inputs required for manufacturing such export product. This will facilitate our pharma manufacturers to work towards getting a major share of exports of such products to potential regulated markets such as US or EU.