GDP Growth at 7.3% in Q2 2016-17 inspiring: PHD Chamber

Mr. Gopal Jiwarajka, President, PHD Chamber of Commerce and Industry appreciated the GDP growth registered at 7.3% for Q2 2016-17 despite slowdown in world economy.

The GDP has been majorly supported by favourable monsoon and good manufacturing growth on account of the progress of Make in India, said Mr. Jiwarajka.

Dynamic policy reform measures undertaken by the Government during last few years have started giving fruitful results as GDP is following a steady growth trajectory, he said.

The growth of agriculture sector has shown an upward trend from 1.8% in Q1 2016-17 to 3.3% in Q2 2016-17, said Mr. Jiwarajka.

The growth of manufacturing sector at 7.1% in Q2 2016-17 is encouraging, however, we look forward to see the growth at around 10% in the coming quarters, said Mr. Jiwarajka.

Construction sector growth has improved from 1.5% in Q1 2016-17 to 3.5% in Q2 2016-17.

Though, there are some apprehensions about the growth scenario in the current quarter vis-a-vis demonetization of the Rs.500 and Rs. 1000 notes, still we are hopeful that our economy will remain steady on the back of various progressive decisions of the Government, he said.

The growth in fourth quarter will compensate the overall GDP of the year and overall growth will remain at around 7%, said Mr. Jiwarajka

We expect a good momentum in rural demand vis-a-vis bumper rabi crops in the coming quarter, he added.

Demand will re-emerge fully with the new currency in circulation in the coming quarters, said Mr. Jiwarajka.

NABET-QCI Confers PHD Chamber with Diamond BMO Organization rating

National Accreditation Board for Education and Training (NABET) which is a constituent Board of Quality Council of India has rated PHD Chamber of Commerce and Industry as a “DIAMOND” BMO organization.

In a press statement issued here today, the PHD Chamber’s President, Mr. Gopal Jiwarajka said that in a communication received from NABET, the Chamber has been rated with this facility.

With the rating of DIAMOND BMO organization, it has been acknowledged by the NABET-QCI that the PHD Chamber is one of the leading industry associations in the country which is equipped with hallmark of quality for enhancing credibility through recognition of ‘good government’ promoted by several ministries and banking institutions.

Its benefits comprise, aligning with international best practices; mark of quality, credibility and capability; reflection of accountability to stakeholders; benefits in leveraging funds from national and international agencies and opportunities for national and international strategic linkages.

NABET is the first organization in the world to offer accreditation of consulting organizations in various conformity assessment areas, Hospital Accreditation etc.  Environment Impact Assessment (EIA) Consultant Accreditation Scheme has been developed which has been adapted as minimum requirement by Ministry of Environment and Forest.

Relaxation in physical presentation of documents for customs clearances to boost Ease of Doing Business : PHD Chamber

While appreciating the elimination of physical documents for customs clearance, Mr. Gopal Jiwarajka, President, PHD Chamber of Commerce and Industry said that this is a great move and it will boost the sentiment of the exporters and importers, and foster ease of doing business at ground.

The submission of paper documents such as GAR 7 forms / TR 6 Challans, Trans-Shipment Permit (TP), Shipping Bill (exchange control copy and export promotion copy) and Bill of entry (exchange control copy) to Banks/DGFT/Customs ports etc. has been completely eliminated, and will become operational from December 1, 2016.

India ranked 143rd on trading across border parameter in the ease of doing business ranking 2017.  With the implementation of this move, we expect a significant improvement in India’s ranking in ease of doing business going forward, said Mr. Gopal Jiwarajka

India’s exports grew by 9.59% during October 2016 with the various drastic reforms undertaken by the government. We look forward for the continuity in the performance of exports further added Mr. Gopal Jiwarajka.

Gopal Jiwarajka is the new President of the PHD Chamber

Mr. Gopal Jiwarajka, Chairman and Managing Director of Salora International Limited has taken over as the new President of PHD Chamber of Commerce and Industry here today following conclusion of its 111th Annual Session.

He is a commerce graduate from Sydecham College Mumbai and has wide experience of 35 years in manufacturing, marketing and finance who has also been instrumental in setting up seven manufacturing plants for colour television, audio systems and components for the Company.

Prior to becoming the President of the PHD Chamber which has been set up way back in 1905, Mr. Jiwarajka was its Senior Vice President and is deeply engaged and associated with various industrial activities for decades with deep industrial and economic insight within him. He is also a founder member of Indian Cellular Association and served on  Executive committee of Electronic Industries Association of India (Elcina) and Telecom committee of The Federation of Indian Chambers of Commerce and Industry (FICCI).

Salora International Ltd. is the flagship company of Jiwarajka Group. Under the able aegis of its visionary chairman Late Mr. S R Jiwarajka, the group has come a long way since its inception in 1968 and today commands a formidable presence both in the Indian and overseas markets.

With a track record of over 36 years in manufacturing and distribution, SIL became a public listed company in 1993. SIL is a listed entity on both the Bombay Stock Exchange and National Stock Exchange and has a big family of more than 5000 shareholders.

SIL is a leading player in the Indian consumer electronics industry and caters to both the retail and the B2B space. Over the years we have developed substantial competence in the manufacturing of CTV components. Our home production, SALORA, has products across LED TV / CRT TV, Smartphone, Tablets, Mobile Phones, Multimedia Speaker Systems, 3G data cards and distributed through it with PAN India sales and service operations. We are also proud business partners of leading organizations, catering to the Consumer electronics, IT & Telecom and Lifestyle & Household product needs in India and a very key player in the E-commerce space as preferred seller on Amazon, Snapdeal and Flipkart.

He has been responsible for bringing ‘Panasonic’ TV and Audio systems in the country.

Growth with Equity, Employment Generation and Environmental Sustainability need of hour for Development: Dr. Manmohan Singh at PHD Chamber 111th Annual Session

Former Prime Minister of India, Dr. Manmohan Singh on Saturday emphasized that while India is moving from the phase of 1991 economic reforms to the new era of sustainable development, however, added that it has not been successful in reducing malnutrition.
Addressing a Valedictory Session of 111th Annual Session of the PHD Chamber of Commerce and Industry here today, Dr. Singh expressed concern that malnutrition is seriously retarding improvements in human development and a further reduction of child mortality.

“Today, India is moving from the phase of 1991 economic reforms to the new era of sustainable development.  The priority now must not only be towards growth, but on the multidimensional aspects of growth, equity, employment generation and environmental sustainability”, he said.

“Economic growth and macroeconomic stability are necessary for reducing poverty.  International experience by and large, shows that countries which are most successful in reducing poverty are the ones which have combined rapid growth with equity in sustain growth.  In such a strategy, public policies influence both the distribution of income and the process of income generation”, said Dr. Singh

He concluded his address by further emphasizing in order to achieve the multidimensional growth that India aims at, its economic policies need to be designed in a manner that the re-distribution process does not feed for the public finances and the growth process itself is not hampered.  “To achieve this objective, inclusive development needs to be combined with consolidation of public finances, financial stability, employment generation and economic growth and protection of environment”, felt Dr. Singh

Earlier speaking Plenary Session on Global Perspective of Investments in India, CEO, NITI Aayog, Mr. Amitabh Kant called for rationalization of labour laws, reduce regulations for improving ease of doing business in India as also spur up its exports so that India becomes the hub of manufacturing as also enlarge its share in global economic engagements.

Secretary, Department of Department of Industrial Policy & Promotion, Ministry of Commerce and Industry, Mr. Ramesh Abhishek explained that his department is revising regulations for better so that the Make in India, Digital India and Skilling India picked up the required momentum as aspired by the Prime Minister of India.

President, PHD Chamber, Dr. Mahesh Gupta and its Senior Vice President and Vice President, Mr. Gopal Jiwarajka amd Mr. Anil Khaitan including the Secretary General of the PHD Chamber Mr. Saurabh Sanyal were present on the among others.

Govt. Saved Rs.36,000 crores through Direct Cash Transfer Facilities in One Year: Ravi Shankar Prasad

Union Minister for Law & Justice, Electronics & IT, Mr. Ravi Shankar Prasad on Saturday disclosed that the NDA Government saved Rs.36,000 crores by digitalizing economic activities such as payment of subsidies and MGNREGA wages through direct cash benefit facilities on to the accounts of intended beneficiaries through Aadhaar.

With e-commerce facilities being made available to rural folk, the government succeeded to transfer their wages for many of its social schemes to intended beneficiaries into their accounts which has amounted to a savings of Rs.36,000 crores in the last 12 months with leakages being plugged, explained the minister.

Addressing a Plenary Session on Transforming India Through Digital India of 111th Annual Session PHD Chamber of Commerce and Industry here today, Mr. Prasad forecast that e-commerce has been gaining in so much of public accessibility with pro-active government’s e-commerce drive that its size in next five years would be around $1 trillion.

The government, according to Mr. Prasad has been driving the digital drive and e-commerce in such abundance that poor labourer is getting their benefits beyond imagination of habitat living in and around metros and large cities.  That is the power of digital India and e-commerce initiatives for which the government would do all possible with suitable laws and policy initiatives for Cyber Security, pointed out the Minister.

As a result of giving a wider spectrum for e-commerce initiatives close to 40 mobile units have come to India to manufacturer mobile devices, of them 11 are approved of for Noida, indicated Mr. Prasad.

NDA Govt. Schemes have acquired missionary modes to promote Science & Technology also: Harsh Vardhan

Union Minister for Science & Technology and Earth Sciences, Dr. Harsh Vardhan on Saturday announced that all the programmes and schemes enunciated by the Modi government have acquired a popular momentum in missionary modes and the Prime Minister should be given a due credit to this effect.

Addressing a Plenary Session on “Transforming India by Leveraging Science & Technology” at 111th Annual Session of PHD Chamber of Commerce and Industry here today, Dr. Harsh Vardhan lavished high praised the Prime Minister Mr. Modi for his extraordinary and visionary leadership with lot of scientific temperament amalgamated in it for betterment of Indian science and technology.

According to him, in the last two and half years India has accomplished a lot on many socio economic front including in the field of science and technology involving all stakeholders and participants in the process of developing India through Make in India, Skill India and Digital India.

The Minister also felt that Modi being at helm of affairs, India’s socio economic landscape would transform and target set for India’s transformation through various schemes would be achieved as intended and desired.

“The focus of the government of the day is to promote scientific and technological temperament also and apply the scientific approach for the development of India so that its pace becomes faster and little more adequate to bridge the rural and urban divide that stayed hugely wider in the past many decades”, said Dr. Harsh Vardhan.

Sri Sri Ravi Shankar inaugurates 111th Annual Session of the PHD Chamber, also Gives Away its Annual Awards for Excellence

His Holiness Sri Sri Ravi Shankar who on Saturday inaugurated the 111th Annual Session of the PHD Chamber of Commerce and Industry in the presence of its President and Sr. Vice President, Dr. Mahesh Gupta and Mr. Gopal S Jiwarajka emphasized on ethics in business for transforming India to be one of the leading global economic power with calling upon the audience present on the occasion to adopt well established values and ethics in their day-to-day life to keep high moral grounds to inspire youths.

It is these higher moral grounds coupled with amalgamation of ethics with them is going to transform India as intended and desired to keep our society in particular and business and economy clean and transparent to set new grounds of morality that could be followed in times to come by one and all, pointed out Sri Sri Ravi Shankar.

Indian businesses and those in charge of capital creation with their hard work and toil would have to be given a due respect by society so that the business and employment grow.  His Holiness also called upon the Chamber of Commerce to open up anti corruption cells in their organization and fight those that implicate the businessmen with false allegations.

Referring to ongoing crisis in Jammu & Kashmir, the His Holiness appealed to all kashmiri’s youth not to talk of Azaadi and on the contrary get integrated with rest of India through enterprise and such initiatives.

Following his discourse with the audience present on the occasion of 111th Annual Session of the PHD Chamber, His Holiness gave away the PHD Chamber Annual Awards for Excellence in variety of fields.

Good Corporate Citizen Award was conferred on National Thermal Power Corporation (NTPC) Ltd. whereas Award for Outstanding Contribution to Social Welfare was given away Trident Limited with Distinguished Entrepreneurship Award going to Mr. Narendra Bansal, Chairman and Managing Director, Intex Technologies Ltd.

Outstanding Businesswoman Award was given away to Dr. Jyotsna Suri, Chairman and Managing Director, Bharat Hotels and Award for Excellence in Skill Development was conferred upon Jubilant Life Sciences. However, Lifetime Achievement Award was given away Mr. R. K. Saboo, Chairman, KDDL Ltd.

In the MSME Segment, Distinguished Entrepreneurship Award went to Mr. Dev Prakash Goel, Managing Director, Conquerent Control Systems Ltd. and Outstanding Achiever for Exports Award was conferred upon Mr. Varun Manwani, Director, Sahasra Electronics Pvt. Ltd.

GIC estimates size of non life insurance growing Five Times by 2026, says its Secretary General

Secretary General, General Insurance Council, Mr. R Chandrasekaran on Friday forecast the size of non-life and liability insurance would grow five times by next decade as non-life and liability insurance is gradually growing a risk mitigation exercise in India.

Inaugurating a Seminar on Financial Risks & Liability Insurance : Current Scenario and Way forward organized by the PHD Chamber of Commerce and Industry here today, Mr. Chandrasekaran emphasized that with proper policy, ongoing innovations and regulations in place, the non-life and liability insurance which is currently estimated at a size of 3%, however, will stay put at this number for another 4-5 years and subsequently frogleap.

According to him, a great deal of public exercise and campaigning is called for to arise public awakening for larger participation of stakeholders in this non-life segment to enable it realize its latent potential.

Supportive regulations and policies are also needed for the growth of non-life insurance which would come about as this is what has happened for life insurance to pick up in India in the past, indicated Mr. Chandrasekaran and also urged the PHD Chamber to carry such conferences across other Tier-1 and Tier-2 cities of India.

In his opening remarks, Vice President, PHD Chamber, Mr. Anil Khaitan also hoped that with changing India, its liability and non-life insurance will also grow faster than anticipated as the Chamber is confident of its estimated growth and diversification.

Speaking on the occasion, Chairman, Insurance Committee of the Chamber, Mr. Yogesh Lohiya also exuded confidence saying that with skilling, digital and Make in India picking required pace, the non-life insurance sector is poised for higher growth.  What is required is a massive campaign to promote this branch of insurance.

Managing Director, Nilam Sharma Limited, Ms. Nilam Sharma in her presentation detailed out her perception on Directors and Officers relating to non-life insurance and their role to diversify and expand this sector.

Co-Chairman, Insurance Committee, PHD Chamber, Mr. S K Sethi proposed a vote of thanks and participated in the Q&A Session with its Director, Mr. Debjit Talapatra moderating the Session.

A technical session followed with serious floor participation on the subject of D&O Insurance which addresses issues of regulation and risk mitigation of Directors of Companies, Corporate and Industry.  The Session panellists were eminent personalities from the insurance sector who enunciated their technical points and case studies from the perspective of company secretary, corporate, insurer, re-insurer, insurance intermediary, law firms and capital market.

Among others who spoke on the occasion comprised Mr. Gurpreet Singh Jolly, Head Global Insurance, Sun Pharmaceutical Industries Ltd; Ms. Niharika Singh, Vice President, Marine & Speciality Lines Underwriting, IFFCO TOKIO General Insurance Co. Ltd.; Mr. Joel Pridmore, Financial & Investment Risk Specialist, Munich Re, Australia; Mr. Sushant Sarin, Tata AIG General Insurance Company Ltd.; Mr. Rohit Mehrotra, Head Liability, India Insure Risk Management and Insurance Broking Services Pvt. Ltd.; Mr. Sakate Khaitan, Senior Partner, Khaitan Legal Associates and Mr. Pranav Haldea, Managing Director, Prime Database.

Corporatize Indian Agriculture : Dr. Ajit Kumar at PHD Chamber

Vice Chancellor, National Institute of Food Technology Entrepreneurship and Management, Dr. Ajit Kumar on Tuesday pitched for corporatization of farming sector to integrate agriculture and farmers with prosperity and well being as this could be the single Mantra to double the farmers’ income as is being intended by the government of the day under Prime Minister Mr. Modi.

He also recommended that close to a lakh of Indian traditional dishes across the country should be standardized for its quality and hygienic values to make them globally popular as the National institute of food technology entrepreneurship and management has already identified thirteen such dishes for which equipment and tools will be put in place for their wider commercial circulation.

Addressing an International Food Innovation 2016 : Doubling Farmers Income Through Science, Technology and Innovation organized by the PHD Chamber of Commerce and Industry here today.  Dr. Kumar said that privatization of agriculture was not the solution for doubling farmers’ income as the experiment has hardly yielded the desired results.

“What ought to be experiment in the modern times is encouragement for corporatization of Indian agriculture as the government cannot be expected to alone explore the unexplored and un-negotiated territories and patches including landscapes of Indian agriculture with its own investments and technological tools. Therefore, corporatization could be an answer to serve this un-chartered territory to bring in prosperity among farmers and farming community by leasing out their land to corporates as with their investments, the Indian agriculture could see better days”, said Dr. Kumar.

According to him, the another strategy that could follow for betterment of farmers should be to equip all the villages with primary and secondary food storages in which their farm produce could be stored and farmers are equipped and linked with such facilities for gaining in higher returns for their produce.

Speaking on the occasion, Principal Secretary, Industries & Commerce, New & Renewable Energy & CEO, Invest Punjab, Mr. Anirudh Tewari also endorsed the views expressed by Dr. Ajit Kumar adding that Punjab is the attracting hub for industries that wish to explore its agriculture sector as the State provide for more than 14% of incentives in terms of infrastructure to such investors as compared to other parts of the country.

Among others who spoke on the occasion comprised Agricultural Counsellor-India & Sri Lanka, Embassy of the Kingdom of the Netherlands, Mr. Wouter Verhey; CEO & Founder, Global Mindset, Australia, Mr. Pradeep Khanna; Chairman, Innovation Committee, PHD Chamber, Mr. Deepak Pahwa; Chairman, International Affairs Committee on Middle East, PHD Chamber, Mr. V K Mishra and Sr. Secretary, PHD Chamber, Dr. Jatinder Singh.

Open up Training Institutions for Effective Domestic Civil Aviation Operations. Also Relax Norms & Interest Rates for Aircrafts Leasing: Aero Expo India-2016

The two-day Aero Expo India-2016 under joint aegis of the PHD Chamber of Commerce and Industry and the Ministry of Civil Aviation which came to an end here today with strong recommendations for the government to open up series of training and skill institutions for growth of domestic civil aviation and its effective operations on lines of IITs and IIMs.

It also recommended that project financing for leasing out aircrafts be made competitive as it is much cheaper in economies of scale whereas lending for such purposes by domestic financial institutions and banks are at exorbitant cost particularly for business aviation as compared to commercial aircrafts.

The Aero Expo India-2016 collectively felt that training currently being imparted for perspective civil aviation human resource and personnel a substandard and needed many more improvements for their sustained employment to effectively serve the passenger and cargo services of the civil aviation sector since investments in such training institutes are meager as a result equipment and other facilities in them are not up to the mark to provide for training and skills that are required for emerging times aviation.

This gap and deficit could be effectively encountered with government investments as private sector lack resources to create training facilities for youths having aspirations to launch themselves in the avionics. “Countries like Malaysia and Morocco that have little resources to create such facilities if can generate training institutions with their investments, why can’t India emulate such a model?”, asked the Aero Expo India-2016.

The Panelists that made the aforesaid suggestions comprised CEO, GMR, Airports Ltd., Mr. P S Nair; CEO GMR, Aero Technic Ltd., Mr. Uday Naidu; Vice President, Industry Development, Strategic Partnership and Offsets at Airbus Group India, Mr. Ashish Saraf; Head of Operations, FWSTC & Cabin Crew Training, Mr. Vikas Khanna; CMD, GYROX Aviation, Col. Rampal Suhag; GM, Projects, Bhadra Group, Mr. Sumit Barat; Founder & CEO, Law Carbon Logistics (P) Ltd., Mr. Kailash Mishra and GM (HR), Airport Authority of India, Dr. Dewakar Goel.

The expo also concluded that leasing norms for commercial aircrafts in India have improved a lot, catching established global standards but need to be evolved for business civil aviation.  It was also recommended that lending costs for leasing out aircrafts should be minimize and brought on par with norms that prevail in countries like Japan and China.

All these measures it put in place would make the domestic civil aviation the most effective entities of the world in times to come as new India has evolved which needs practices that are prevalent in economies of scale to satisfy the aspirations of Indian people in general and its youth in particular.

Chairman, Civil Aviation Committee, PHD Chamber, Mr. K Narayana Rao also concluded with more such interface across industry.

Airport Expansion, Enhanced Regional Air Connectivity & Expansion in Air Traffic is top Priority of Govt.: Ashok Gajapathi Raju

Minister of Civil Aviation, Mr. Ashok Gajapathi Raju Pusapati, Minister of State, Ministry of Civil Aviation, Mr. Jayant Sinha and Secretary, Civil Aviation, Mr. Rajiv Nayan Choubey inaugurating the two-day Aero Expo India-2016 organized by the PHD Chamber of Commerce and Industry under the patronage of Ministry of Civil Aviation here today, the Minister remarked that with new civil aviation policy in place and other associated reforms accompanying it, the civil aviation sector would emerge to serve the un-served at affordable pace.

Minister of Civil Aviation, Mr. Ashok Gajapathi Raju Pusapati on Friday reassured the Indian civil aviation industry, emphasizing that the government of the day is exploring all possibilities for capacity expansion of leading airports in the country as well doing its best to make sure that the regional air connectivity is accomplished as per its UDAAN initiative.

The Minister also stressed that though the domestic civil aviation industry has been growing at a rate of more than 20% in the last few years, admitting that higher passenger growth in civil aviation sector is still a challenge for the government which could be won with addition of capacities in India’s leading airports.

Mr. Ashok Gajapathi Raju Pusapati also emphasized that the cargo sector of Indian civil aviation though has developed but needed further expansion and development since the industry as such has been growing over 20% per annum and hoped that this growth rate would even exceed in times to come in view of India’s economic potential with its high appetite for higher growth.

Speaking on the occasion, Minister of State, Ministry of Civil Aviation, Mr. Jayant Sinha asked civil aviation industry to grow in such a manner so that its passenger traffic, currently estimated at about 150 million for domestic and overseas sector multiplies manifold and catches on pace with the air traffic of China which presently is calculated at 500 million per annum.

In order to achieve this objective, the ministry has been adopting three pronged strategy under its UDAAN commitment which includes expansion of airports capacities, ensure regional connectivity and equip the air passenger with better level of satisfaction and experience under its Air Sewa initiative, emphasized the minister adding that the government would do all possible to transform the civil aviation sector.

Secretary, Civil Aviation, Mr. Rajiv Nayan Choubey who also was present on the occasion, reiterated the government commitment for higher growth of civil aviation sector with all possible government’s initiatives in partnership spirit, adding that by December 2016 dozen of schedule commercial operations could begin to connect small towns in the country under its regional connectivity drive.

Minister, Government of Ireland, Mr. Pat Breen who also spoke on the occasion emphasizing that India and Ireland should have stronger partnership to expand India’s civil aviation sector as his country is one of the global leaders in this sector, particularly on leasing out operations in which Ireland has already established its hegemony.

Among others who participated in the inaugural ceremony comprised, the President of the PHD Chamber, Dr. Mahesh Gupta who said that civil aviation sector would reach the intended heights with proactive government policies whereas its Senior Vice President, Mr. Gopal Jiwarajka praised the UDAAN initiative of the NDA government.

Mr. Jayant Sinha also chaired the session on CEO Chai Par Charcha and complimented PHD Chamber for providing meaningful platform.  Ambassadors, diplomats from US, Czech, Poland alongwith also attend the session.

Chairman Civil Aviation Committee, PHD Chamber, Mr. K Narayana Rao proposed to the government to bring in civil aviation sector under priority lending scheme of the government, especially for acquiring smaller air crafts for enhanced regional air connectivity.  Co-Chairman, Civil Aviation Committee, Mr. Bhupesh Joshi along with Secretary General and Director of the Chamber Mr. Saurabh Sanyal and Mr. Yogesh Srivastav were also present on the occasion in which a knowledge report by Auctus Advisors was released and an MoU was signed between FSTC and New ATR.

SECOND SERIES OF PHD EDUCATIVE & KNOWLEDGE SERIES ON GOODS & SERVICES TAX

GST ITC/ Export & Import of Goods & Works Contract under GST

Thursday, 17 November 2016 at PHD House, New Delhi

The Indirect Taxes Committee of PHD Chamber is organizing its Second Knowledge Series on Goods & Services Tax with the objective of analyzing in detail the GST provisions vis-à-vis the present indirect tax provisions and understanding the GST Impact on different industry sectors.

The third workshop in the above series was organized on 17^th November 2016 at PHD House, New Delhi covering GST Input Tax Credit and Export & Import of Goods/ Services & Works Contract under GST.

Mr. Bimal Jain, Chairman Indirect Taxes, PHD Chamber mentioned that India is looking at dual GST Model. Both the centre and states are going to levy tax on goods and services. He accentuated that GST council have decided four tier rates 5%, 12%, 18%, 28% and 28% with cess for tobacco, luxury cars, etc. He also gave three GST mantras for utilization of credit sequentially. He opined that GST is one nation, one tax. It will create an open national unified market for all of us. He further said that GST is applicable to all over India including Jammu and Kashmir. He explained the various provisions for GST Input Tax credit and Negative List for availing GST credit under GST Model law. He also talked on matching concept under GST. He concluded by giving a brief view of GSTN network.

Shri S D Majumdar, Former Chairman, CBEC shared that that taxman and taxpayers should prepare themselves for GST.  Mr. Majumdar explained the upcoming dual structure of GST for both Centre and States. He observed that our constitution does not permit to take away fiscal autonomy of states. GST will remove the cascading effects of taxes and the compliance cost will come down. He further stated that for the first time India will have a common economic market. He emphasized that GST being a destination based consumption tax, it will help the consumption states to improve their economy and become financially sound. He highlighted that taxing small and medium enterprise is not cost effective. He concluded by saying that Rules and their proper implementation is required for effective GST regime.

Mr. N K Gupta, Co-Chairman, Indirect Taxes Committee mentioned that proper implementation of GST is a key to success. He shed light on the seamless flow of credit under GST. He felt that it will take time to iron out specific issues under GST as it has taken ten years to settle the TDS provisions. He mentioned that in GST regime stock transfer becomes taxable. He concluded by saying that huge taxation liability and tax provisions are levied in work contracts under GST.

GST, Bankruptcy Laws Will Emerge Facilitator for inbound & outbound M&A: PHD Chamber

Global Investment and Acquisitions Forum 2016 held under joint aegis of PHD Chamber of Commerce and Industry, Corporate Catalyst India Pvt. Ltd. and M&A Worldwide, has forecast that with GST and Bankruptcy Laws in place, prospects for mergers and acquisitions both inbound and outbound would grow proportionately in India.

The Forum also felt that India is no longer experimental zone for multi nationals for their operations as it has evolved so much in the last couple of years that global giants have strategies for setting up of their operations in India because of its emerging potentials which promise higher returns on investments.

The unanimous view of the forum was that multi nationals and global giants that would earlier set up representative offices and liaison channels in India as part of their strategy to open up offices in India have moved on to a next phase as per which their strategies are to launch their corporations and begin business with their counterparts in joint venture sector. 

This change has come after the new government has come to power with Prime Minister Narendra Modi at the helm of affairs.  This view was expressed here today by mergers and acquisitions experts such as Chairman, M&A Worldwide, Bjorn Voigt; Director, Corporate Catalyst India, Mr. Ajay Sethi; Chairman, International Affairs Committee for Europe, PHD Chamber, Mr. Mohit Jain and its Secretary General, Mr. Saurabh Sanyal and Director, Mr. Yogesh Srivastav.

The Forum was presided over by the National Spokesperson of BJP Mr. Nalin Kohli who spoke about all the schemes of economic policies including demonetization and its benefits on M&A.

Demonetization to help inflation remain under control, interest rates to fall: PHD Chamber

While appreciating the Government efforts to control inflation in the economy vis-a-vis reforms in supply chain, Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry said that demonetisation of  rupees 500 and 1000 notes would also help prices to remain under control in the coming months.

Good monsoon behaviour and abundant supply of kharif crops coming in  the market in the recent  months has  checked the  rise in prices of many commodities, said Dr. Gupta.

The average WPI inflation so far in this financial year stands at around 3% during Apr-Oct 2016 and we are hopeful that inflation will fall below 3 percent in the coming months, he said.

The recent developments has created a good scope for further reduction in repo rate in the forthcoming monetary policy statement scheduled on December 7, 2016.

Repo rate at this juncture should not be more than 6% to give a big push to the economy with the new currency in circulation, said Dr. Gupta.

Reduced rate of interest with benign inflationary expectations would be a major breakthrough for the economy to enter the higher growth path, going forward, said Dr. Gupta.

Pay Advance Salaries to Govt/ Psu's/ Private Sector Employees in cash through Organisations – PHD Chamber

The PHD Chamber has suggested to the government to pay an advance as salaries in cash   to Government/ public sector and private sector employees  @ Rs 10,000 per employee with new Rs 500/- notes  as advance against salary of November 2016. This suggestion would also avoid overflowing queues and hardship being faced by most of the citizens and would also avoid loss of productivity due to employee absenteeism in organizations.

In a representation submitted to the finance minister here today, president PHD Chamber, Dr Mahesh Gupta, said that the suggested move would amount in reducing queuing outside banks and ATMs across the country.  It would immediately make new currency available in one day   without stressing banks and post offices .

Dr Gupta pointed out that PHD Chamber was one of the leading institutions that welcomed the demonetization move and applauded it for flushing out black money and stop terrorist funding in the country. 

PHD Chamber’s debut Aero Show –AERO EXPO INDIA 2016 to Chart out Blue Print of Regional Air Connectivity.

PHD Chamber of Commerce and Industry along with Ministry of Civil aviation is all set to organize the first ever aero show in the Capital. AERO EXPO India 2016 to be held on 18th and 19th ​November 2016 at Indira Gandhi International Airport is poised to become one of the largest general aviation trade expo of India.

 More than 100 companies will be present at the expo, where they will show off the entire spectrum of general aviation, ranging from Gyroplane, and small aircraft to multi-engine business jets, helicopters etc. Attention will also be given to other special theme areas such as Regional Connectivity, the Engine Area and the With its broad, comprehensive range and the many new innovations that exhibitors have announced for the show, the AERO EXPO 2016 is one of the world’s most important general aviation exhibitions.

Dr Mahesh Gupta, President, PHD Chamber of Commerce and Industry said, “We want to showcase India’s industry development and promote the capabilities of the country’s aerospace supply chain,” adding that Indian aviation sector were expected to ink 4-5 large scale agreements and memoranda of understandings with foreign counterparts.

Dr Gupta said apart from clinching new business deals, the mission would also provide the country’s aerospace small and medium enterprises with greater access to the global aviation market. He said Aero Expo 2016 would also use the platform promote India as the preferred aerospace hub for Asia-Pacific, as well as, showcase India’s Aerospace eco-system.

“This also led to enhanced focus on the remote and regional air connectivity sector, which in turn aided in formulating the Regional Connectivity Scheme. There couldn’t have been a better timing for the chamber to play its role in providing a Harmonious platform to further strengthen the creation of an ecosystem for the Progress & Development of this sector, said Mr KN. Rao- Chairman: Civil Aviation Committee-PHD Chamber

The 2 days expo will also witness global think tanks of civil aviation sector to suggest measures and way outs to transform it to the scale of economies as also give further impetus to Make in India & Skilling India initiatives of the government under a joint platform of PHD Chamber of Commerce and Industry and Ministry of Civil Aviation.

The parallel sessions alongside the expo would deliberate on host of issues, requirements of modern and emerging times so that the aviation expands, diversifies and multiplies including modernize to the best satisfaction of all stakeholders involved in its growth. Host of policy makers, government officials and other such relevant personalities would also join the convention-cum-exhibition for aviation, aero space and air cargo with their counterparts representing various sets of the industry to further sensitize its growth for capital creation with sufficient infrastructural facilities including creation of additional employment, feels the PHD Chamber.

 

The conclave-cum-exhibition will also seek to boost the status of India as a leading global hub of aviation, aerospace, air cargo and logistics businesses, tourism and the like.  The first addition will be unique show with an aim to present a microcosm of the Indian aviation industry.

CBDT advancing to finalize draft forthcoming Budget for public consultations

Initial draft of forthcoming budget is being finalized by Central Board of Direct Taxes following which it would be placed for public and industries consultations for their reactions to make it more comprehensive and inclusive, according to Chairman, CBDT, Mr. Sushil Chandra.

Inaugurating an International Tax Conference : Global Tax Issues & Recent Developments under aegis of PHD PHD Chamber of Commerce and Industry here today, Mr. Chandra emphasized that the board is committed to bring in complete transparency in India’s tax administration as well as its tax policies that would be entirely friendly, leading to facilitation of businesses.

The Chairman, CBDT, however, appealed to the industry and business community not to use international tax treaties for tax avoidance, rather make use of them for facilitation of businesses in all segments of economic engagements.

Elaborating on forthcoming budget making exercise, Mr. Chandra pointed out that it has been almost finalized with few additions here and there, following which it would be taken for larger industry and public consultations so that their suggestions and recommendations relating to taxation and other such issues are absorbed in the document for optimum satisfaction of both government and industry including public.

Speaking on the occasion, Principal CCIT (International Tax & Transfer Pricing), Mr. Akhilesh Ranjan reiterated the government’s resolve for bringing in absolute transparency in its tax administration and tax dispensation so that businesses flourish without obstruction to government revenues.

He emphasized that on the issue of transfer pricing, the government has been moving on the right direction, removing complexities in it and added that there is a consensus on host of such issues in G-20 group of nations in which India has begun to play a dominant role.

In his welcome remarks, Sr. Vice President, PHD Chamber, Mr. Gopal S Jiwarajka and the Chamber’s Direct Taxes Committee Chairman, Mr. Anil K Chopra sought fair play for all that have become participants in India’s global engagements including its growth engine.  They appreciated various positive measures by the tax department  that are helping India to become a preferred destination.

Co-Chairman, Direct Taxes Committee, PHD Chamber, Mr. Mukul Bagla and its Secretary General, Mr. Saurabh Sanyal also expressed their views on direct taxation during the conference.

Forthcoming Budget will have stipulations for simplified direct and indirect taxation: MOS Finance

Minister of State for Finance, Mr. Arjun Ram Meghwal on Wednesday promised that the forthcoming budget would have stipulation and provisions that would lead to further simplification of tax administration and tax dispensation of both direct and indirect taxes to enable business community to render their transaction smoothly and effectively.

In his Valedictory address at International Tax Conference : Global Tax Issues & Recent Developments under aegis of PHD PHD Chamber of Commerce and Industry here today, Mr. Meghwal described the demonetization move of the NDA government as a step that would severely attack the menace of cross border terrorism and its funding besides substantially reducing the threat of rising black money.

“Tax administration and tax policies need to be further simplified to promote ease of doing business as well as its facilitation.  The forthcoming budget would reflect and adequately cater to this effect”, said Mr. Meghawal adding that the government of the day is committed to eliminate corruption and red tape.

“The decision to demonetize the Rs.500 and Rs.1,000 notes is one such  step in this direction and many more such moves would follow as Prime Minister Mr. Modi is determined to purge the system from all its ailments”, said the Minister.

Among others who spoke on the occasion comprised Member, Competition Appellate Tribunal, Ms. Anita Kapur; Vice President, ITAT, Mr. G D Agarwal; Vice President, PHD Chamber, Mr. Anil Khaitan; Chairman, Direct Taxes Committee, PHD Chamber, Mr. Anil K Chopra. 

Aggressive Campaign required for Skilling Youth: Director, (UGC-Net), CBSE

Director, (UGC-NET), CBSE, Mr. M V V Prasada Rao on Tuesday admitted that much needed to be done to impart skills for wider and comprehensive coverage of Indian populace, particularly at formative years which is the sole reason for India to lag behind on technological front though efforts have now begun on this front.

Addressing a Conference on India’s Yough Dividend-The Future of Digital Skills under aegis of PHD Chamber of Commerce and Industry here today in partnership with ICDL, Mr. Rao, therefore, suggested that digital India would succeed with it being integrated sufficiently with tools through which information dissemination becomes conclusive with skills par excellence at the arms of owners.

According to him, the prevailing operations and applications at mobiles, laptops and computers and getting acquainted with them is not the indication of absorptions of available technology with those that claim skills at their possession. 

“It is beyond these tools and appliances and when we integrate ourselves and connect adequately with emerging devices, we can only then claim to have established liaison with these for successful digitalization which is the requirement of the day”, said Mr. Rao.

In his special address, CEO, ICDL, Mr. Damien O’Sullivan said that his organization would shortly establish its operations in India and provide certification though which Indian youths, seeking to be employed and aspire to be entrepreneur would fulfill all its cherished desire as this certificate would be the indicator of the qualifications and skills that are required for suitable employment and entrepreneurship.

On the occasion ICDL Module on Digital Marketing was also released.

Among others who spoke on the occasion consisted of Co-Chairman, Skill Development Committee, PHD Chamber, Mr. Tahsin Zahid along with Sr. Secretary, Dr. Jatinder Singh.

India-UK trade agreement to spur trade at USD 20 billion by 2020: PHD Chamber

Prospective bilateral agreement and growth avenues would push trade between India and UK to USD 20 billion by 2020 from the current level of at around USD 14.3 billion in 2015-16, said Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry in a press statement issued here today.

India and UK are bound by invigorating business and investment opportunities and the close economic linkages based on the fundamentals of understanding and support, said dr. Gupta.

Among various products, India’s thrust products in the UK includes knitted and non-knitted articles of apparels (20.33%); mechanical appliances and machinery (7.64%); pearls and precious stones (5.88%); Vehicles and parts thereof (5.53%); footwear and the like (5.44%); pharmaceutical products (5.15%); electrical equipment (4.49%); articles of iron and steel (3.45%) of the total exports to UK.

UK's thrust products in India includes pearls and precious stones (29.42%); mechanical appliances and machinery (13%); iron and steel (7.86%); electrical equipment (6.49%); optical, photographic, cinematographic and similar instruments (5%); aluminum and articles thereof (4.12%); beverages, spirits and vinegar (3.80%) of the total exports to India.

Dr. Mahesh Gupta also added that Indian exports into UK are mainly focused on Consumer Goods, viz. nearly 65% of the total exports. On the other hand, nearly 43.5% of the total imports from UK are focused on Intermediate goods.

Although the trend in India’s exports to UK has remained in favour of consumer goods over the years, India’s import from UK underwent dramatic shift from raw materials, viz. 36.5% of the overall imports from UK during 2007, to intermediate goods, viz. 43.5% presently.

Dr. Mahesh Gupta said that though India’s penetration in the UK’s market has remained consistent, UK’s penetration rate revealed signs of substantial revival in the recent past. Also, Indian products hold significant footprint in the UK’s market based on the intensity index of India in UK.

India’s export pattern has become more and more aligned with the import pattern of UK over time. Both nations witnessed a favorable complementarity scenario, which exhibits substantial potential trade gains for both the nations, further added Dr. Mahesh Gupta.

Also, the basket of exportable products from India remained opulently diversified compared to the importable basket from UK over time, thereby rendering Indian exporters relatively less susceptible to volatility in a turbulent trade scenario.

He also indicated about the lower than expected intra-industry trade figures between the two nations and to push trade further, both nations must engage in higher intra-industry trade in the medium to long run. Also, it is essential to reduce the exorbitant trade cost between India and UK for agricultural products to provide that much needed impetus to the agrarian exports.

Dr. Mahesh Gupta said that with further liberalization of FDI policy in different segments and the advent of GST next year, FDI from UK is expected to touch a new growth trajectory. Undoubtedly, collaboration of India and UK in the realm of investment and business can truly transform both the nation’s entrepreneurial ecosystem.

In the past 16 years, UK has invested nearly USD 22 billion in various forms of Foreign Direct Investment in India. UK is, presently, ranked 3rd biggest investor in India, and going by the trend, holds the potential to attain the top position, said Dr. Mahesh Gupta.

Dr. Mahesh Gupta further elaborated that majority of India’s investment in UK were in the Manufacturing sector, viz. around USD 766.32 million; followed by Financial, Insurance and Business services (USD 298.27 million); Transport, Storage and communication services (USD 81.77 million) among other significant investments in UK.

Going ahead, it is essential for both the parts to become proactive and become prompt in finalizing the bilateral agreement to rejuvenate the falling trend in trade. Both nations should continuously meet and engage in discussions related to mitigating bilateral trade issues, defence ties, renewable energy, skill development and other vital areas.

Going ahead, growth prospects for trade and development between two countries are very promising and sustainable, not only for the coming years but for the coming decades, said Dr. Mahesh Gupta.

PHD Chamber urges the Government to rationalise 28% GST on white goods

While welcoming the GST rate structure of 5%, 12%, 18% and 28% announced by the Union Finance Minister, the President, PHD Chamber of Commerce and Industry, Dr. Mahesh Gupta said 28 per cent tax on white goods is not in sync with the present tax reforms.

Dr. Mahesh Gupta said that high tax rate will have a cascading impact on the consumer goods segment and hit to consumer demand majorly in the rural segments of the economy as demand is primarily emerging for the rural sectors of the economy.

I strongly believe that the impact of GST would be a major game changer for the economy for accelerating the economic growth and generating more and more employment opportunities, said Dr. Mahesh Gupta.

The lowest tax rate of 5 percent is suggested to be levied on items of mass consumption such as spices, mustard oil etc. which are used particularly by common people is a welcome step. The standard tax rate of 12 and 18 percent would accommodate most of the goods and services including processed foods, soaps, oil, smart phones etc. is also good.

We appreciate the pre emptive measures to keep inflation under check as essential items including food, which presently constitute roughly half of the consumer inflation basket, will be taxed at zero rate, said Dr. Gupta.

Undoubtedly, the interest of common man has been duly taken care of which is evident from finalisation of 5% tax rate on common use items, as against 6% proposed earlier. Further, zero rating of necessities is also a welcome move in the beneficial interest of the common man, said Dr. Mahesh Gupta

The fourth slab of 28 percent will imply to white goods and cars while an additional cess will be collected along with the higher tax rate of 28 percent on Luxury cars, which the industry says is counterproductive to the ongoing tax reforms in the country as it will have impact on demand and make in India programme and consequently on manufacturing and employment, said Dr. Gupta.

The Chamber urges the government to look into GST rate for white goods and to reduce the same to maintain a rational rate in line with the initial aims of GST implementation. The chamber awaits the rates for gold and precious metals which will be announced today during the GST council meet today, he said.

Imports from China seen decelerating by 20% in the coming months: PHD Chamber

Demand for Chinese products in India is decelerating month after month and imports from the country would see a major hit in the coming months finds a survey conducted by PHD Research Bureau of PHD Chamber of Commerce and Industry.

Survey has been conducted in the various consumer and industry segments across the country and around 2000 responses were analysed from the consumption segment and more than 100 industry stakeholders participated in the survey study.

Demand for industrial products such as raw materials etc is declining by 10-15% and demand for consumption goods is less by 20-25% said the survey study.

Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry said that Indian production capabilities are incasing and becoming competitive as compared with China because of many reasons such as improvement in the ease of doing business. Also, there is a significant shift in the consumption pattern of Indian consumers from the Chinese  products to domestic products.

India has been dramatically improving in all the global frontiers with its accomplishments in the Global Competiveness Index by moving 16 spots up to 39th place from 55th place earlier, Ease of Doing Business Ranking (130th) and improvements in goods market efficiency, business sophistication, and innovation which reflects there is a rising accentuation in global competitiveness of India, said Dr. Mahesh Gupta

India’s imports from China increased more than 500% from US$10bn to US$61bn during the last ten years from 2005 to 2015. China’s share in India’s imports increased from 7% in 2005 to around 16% in 2015 said the analysis by PHD Research Bureau.

However, the trend has been reversed and growth of imports from China decelerated by 8% in the first six months of the current financial year 2016-17.

The growth of imports from China has been decelerating and is in the negative trajectory in the recent months; no enthusiasm is seen in the upcoming months too.

Despite the festive season imports from China decelerated (-) 14.5% in the month of September 2016  whereas imports from World decelerated (-) 2.5%.

Majority of the decline in imports has been witnessed in products such as ships and boats, tobacco products, aquatic products, pearls and precious stones, musical instruments and parts thereof, mineral fuels and oils, lead and articles thereof, cocoa products, and wool and products thereof, further revealed the analysis.

Analysis highlighted the pivotal role of investments for the long term sustainable goals.

FDI inflows from China to India between April 2000 and March 2015 stood at USD 288.512 billion wherein China’s share was roughly 0.47% which rightfully indicates that China is not a significant and substantial investor in India as compared to Singapore, Mauritius and Switzerland.

As the Make in India programme is getting pace month after month, we can anticipate a significant improvement in the balance of trade with China, said Dr. Mahesh Gupta.