India’s exports better placed in its product diversification: PHD Chamber

India’s exports are better placed in product diversification as concentration of its top ten export products is only 58% as compared to most of the top ten leading export countries of World viz. Hong Kong (89%), Republic of Korea (86%), Japan (77%), UK (71%), Germany (70%), USA (68%), China (68%), Netherlands (63%) and France (60%), said an analysis conducted by PHD research Bureau of PHD Chamber of Commerce and Industry (for details refer Annexure I).

Higher the percentage of the country, the more it is concentrated to exports of few products and lesser the percentage of the country, the more diversified it is in terms of export diversification of its products.  

India has consistently diversified its top ten export products as concentration of top ten export products was 60% in 2010 and 58% in 2015.

Notwithstanding the excellent diversification of export products, India’s export growth trajectory has showed lackluster performance due to slowdown in demand in the destination countries. Although things are improving in logistics and export infrastructure front, the cost of credit to exporters is still high as compared to its competitors in the international market said Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry.

As world economy witnessed slowdown in demand, all the leading export countries posted a negative growth in 2015 except France. Export growth was negative in Netherlands (-17%), Italy (-13%), Germany (-11%), UK (-9%), Republic of Korea (-8%), USA (-7%), Hong Kong (-5%), China (-3%) but positive in France at (1%).

India stands 19th in the list of exporters (worldwide) with merchandise exports valued at US $262 billion. India’s share in world exports is estimated at 1.6% with a growth rate of ( - )15.5% in the year 2015-2016 (for details refer Annexure II).

Further, a ray of hope is emerging with decent efforts undertaken by the government in improving the ease of doing business and reforms in the export infrastructure, he said.

With the continuous reforms, exports showed a positive growth of 1.27% in the month of June, 2016 and hopefully one can anticipate an incremental growth scenario in the coming months too, said Dr. Mahesh Gupta.  

Going ahead, there is lot of potential for India to enhance its exports as 7 out of the top 10 export destinations of India such as USA, UAE, Hong Kong, China, UK, Singapore and Germany are also among the top ten export destinations of leading World exporters.

As these destinations are already in focus of our exporters, the need of the hour is to enhance our competitiveness in terms of  reduced costs of capital and improved exports logistics to increase our volumes of exports, said Dr. Mahesh Gupta.  

Going ahead, the continuous pace of reforms at domestic front and recovery in the international market would help India to remain in positive exports growth trajectory in the coming months.

INDUSTRY - FARMERS’ PARTNERSHIP NECESSARY FOR INCREASED SOY PRODUCTION: SPECIAL SECRETARY, MINISTRY OF FOOD PROCESSING INDUSTRIES

Special Secretary, Ministry of Food Processing Industries, Mr. J P Meena on Thursday asked the India Inc. to establish partnership directly with the farmers for increased soy acreages, given its protein value for its large scale production and consumption.

Addressing a Workshop on Role of Soy in Health and Nutrition under aegis of PHD Chamber of Commerce and Industry here today, Mr. Meena further emphasised that just as a massive campaign was launched to popularize eggs consumption under a title “Sunday ho ya Monday, Roz Khain Ande”, similar exercise needs to be initiated to propagate the use of soy for mass consumption as well as production.

The Special Secretary also explained that government has host of subsidized schemes to an extent of 50% for soy processing through mega food park up to an investment of Rs.50 crore in land to set up 4 to 5 soy processing plants.

“The other scheme is likely to be brought in by the Ministry of Food Processing to enable investors set up processing units in which the investments in plants and machineries could be up to Rs.10 crore, with government subsidizing to an extent of 35%”, said Mr. Meena.

He also urged industry to develop and diversify the domestic soy market and should not alone concentrate its efforts on exports as with the development of domestic market with this approach will bring in higher soy acreages by farmers under cultivation even if its productivity in Indian context is not at desired level.

In his welcome remarks, Vice President, PHD Chamber, Mr. Anil Khaitan also stressed the need for extensive efforts by industry to expand the soy production for its higher consumption as this would serve the twin needs for extensive soy production for mass consumption as well as enhancing its exports.

Among others who spoke with similar tone during the workshop comprised Senior Attache for Agricultural Affairs, US Embassy, Mr. J Jonn P Slette; Chairperson, Agribusiness Committee, PHD Chamber, Ms. Priyanka Mittal and Chairman, Kwality Dairy Industries Ltd, Dr. R S Khanna.

BCCI PRESIDENT ONE OF THE ATTRACTIONS OF 4TH PHD GLOBAL SPORTS CONVENTION-2016 ON FRIDAY THIS WEEK

President, BCCI, Mr. Anurag Thakur along with the Secretary, Sports, Ministry of Youth Affairs and Sports, Mr. Rajiv Yadav and host of other such dignitaries of eminence, relating to sports landscape will assemble here at PHD House, New Delhi for the 4^th Global Sports Convention-2016 under its aegis here on Friday this week.

The flagship event of the PHD Chamber with a theme “Sports for All-The Ultimate Sporting Legacy” will be inaugurated by the President, BCCI in which Sports Excellence Awards will also be given away to sports personnel of different hue and cry to encourage them to excel in sports with a motto of attaining distinction for individuals and thereby for the nation as a whole.

India Inc. will be represented during the day long conference by President, Sr. Vice President, Vice President of the Chamber respectively Dr. Mahesh Gupta, Mr. Gopal Jiwarajka and Mr. Anil Khaitan with it’s Sports Committee Chairperson Ms. Neelam Pratap Rudy whereas the High Commissioner of Australia to India, Ms. Harinder Sidhu will also be present providing for global sports perspective among other dignitaries of similar scale.

The 4^th PHD Chamber Global Sports Convention will also deliberate upon variety of emerging sports issues, eliciting practically possible solutions to promote and propagate sports among all categories of human interests as also seriously work for providing a road map for a holistic development of Indian youth.

In a statement, Chairperson, Sports Committee, PHD Chamber, Ms. Neelam Pratap Rudy said that the convention will also provide for hosting panel discussions on creating a lifetime sporting legacy for the youth of India, suggesting ways and means for conquering challenges and optimizing opportunities in the field of sports.  It will also make ways for working out policy related suggestions for the government so that the sporting becomes pervasive in India with the sole objective of attaining distinctions in all sports that India can think of.

Lot of scope to reduce repo rate, competitive economies significantly better in costs of credit: PHD Chamber

While welcoming the third Bi-monthly Monetary Policy Statement for 2016-17 by RBI, Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry said that there is a lot of scope to reduce the repo rate as good monsoon is visible and inflationary expectations are also benign.

           

At this juncture, economy should be supported by lower interest rates to enhance the demand for durables and to boost up the manufacturing sector, said Dr. Gupta.

Cost of credit to businesses is high as compared with many competitive economies, impacting not only in the domestic market but also in the international markets, he said.

India’s repo rate at 6.5% is significantly higher as compared with the world’s 5 largest manufacturing countries including China (4.35%), United States of America (0.5%), Japan (-.1%), Germany (0) and Republic of Korea (1.25%).

Other competitive economies such as Thailand (1.5%), Hong Kong (0.75%), Malaysia (3%), Singapore (0.37%), Taiwan (1.38%) are significantly better than India in the costs of credit.

Going ahead, we expect a significant cut in repo rate to facilitate the competitiveness of the manufacturing sector and to compete in the international market, said Dr. Mahesh Gupta.

India better than leading export countries in diversification of destinations, competitiveness crucial to generate export volumes: PHD Chamber

India is better placed in the diversification of export destinations as concentration of exports to its top ten export destinations is 51% as compared to top ten leading export countries of World Hong Kong (81%), Japan (70%), Netherlands (68%), Republic of Korea (67%), UK (65%), USA (63%), Germany (60%), China (59%), France (59%) and Italy (57%), said an analysis conducted by PHD research Bureau of PHD Chamber of Commerce and Industry.

More the percentage is that country is highly exporting to few destinations and lesser the percentage is country is more diversified to a large number of export destinations.  

Notwithstanding the excellent diversification of export markets, cost of credit, volatile exchange rate, poor logistics and export infrastructure impede competitiveness and increase in export volumes, said Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry

The top 10 exporting economies across the world are China, USA, Germany, Japan, France, Republic of Korea, Hong Kong, Netherlands, UK and Italy. 

The share of the top ten leading exporters in total world exports is estimated at around 55% of China contributes highest at 14% followed by USA (9,2%), Germany (8.2%), Japan (3.8%), France (3.5%), Republic of Korea (3.2%), Hong Kong (3.1%), Netherlands (2.9%)and Italy (2.8%), said the analysis conducted by Research Bureau of PHD Chamber.

However, all the leading export countries posted a negative growth in 2015 except France.  

Export growth was negative in Netherlands (-17%), Italy (-13%), Germany (-11%), UK (-9%), Republic of Korea (-8%), USA (-7%), Hong Kong (-5%), China (-3%) and positive in France at (1%).

However, India stands 19^th in the list of exporters (worldwide) with merchandise exports valued at US $264.38 billion. India’s share in World exports is estimated at 1.6% in the year 2015.

Going ahead, there is lot of potential for India to enhance its exports as 7 out of the top 10 export destinations of India such as USA, UAE, Hong Kong, China, UK, Singapore and Germany are also among the top ten export destinations of leading World exporters.

As these destinations are already in focus of our exporters, the need of the hour is to enhance our competitiveness to increase our volumes of exports, said Dr. Mahesh Gupta.  

Cost of credit is crucial to export competitiveness; the interest rate environment needs to be rationalized to increase the competitiveness of our exporters, he said

As MSME sector contributes around 40% in our exports, easy access to finance for the MSMEs sector is critical to revive the exports growth trajectory, to develop the strong manufacturing base and job creation. 

However, the MSMEs sector is finding very difficult to survive and attract fresh investments because of high interest rate environment since the last many years though the rate of inflation has come down drastically, said Dr. Gupta

PRINCIPAL SECRETARY, INDUSTRIES & COMMERCE, HARYANA ASSURES INDUSTRY TO SENSITIZE ITS LOWER BUREAUCRACY TO RESPOND TO ITS NEEDS

Principal Secretary, Industries & Commerce, Haryana, Mr. Devender Singh on Saturday articulated that with new regime in place, several pro-active measures have been notified for the industrial development of the State, admitting that the notified decisions have not been percolated down the lower rung of bureaucracy and, therefore, their implementation is stuck up.

He, however, added that industrial applications if registered on prescribed portals and websites, it becomes the responsibility of the administration to facilitate their logical execution as it is closely monitoring such applications in time bound manner. 

Presiding over the Interactive Session with the Principal Secretary, Industries & Commerce, Government of Haryana under aegis of PHD Chamber of Commerce and Industry here today, Mr. Singh said, “the complaint has been coming to state administration by those claimant that have physically submit their applications to concerned department as such applications are not closely monitored”.

Therefore, if the applications for setting up industries in Haryana are registered with the concerned portal and websites, it becomes the responsibility of the state administration for their faster disposal and in case if such applications are found inadequate in any manner, the administration seeks information and clarity to entertain their quicker disposal.

Managing Director, HSIDC, Mr. Sudhir Rajpal who also spoke on the occasion, emphasized that closely 60 per cent of the industrial plots in Haryana at its different locations are lying vacant for suitable buyers and therefore, the corporation would soon come out with e-auction policy for their disposal.

According to him, the e-auction policy is very transparent and is without any pitfalls and even if it does not attract buyers as intended, possibly the Government of Haryana might come out with alternate pricing policy for such industrial landscapes so that these are disposed off for the faster industrialization and economic activities of the State.

In his welcome remarks, President, PHD Chamber, Dr. Mahesh Gupta praised the pro-active initiatives of the state of Haryana to make sure that industrial activities are expanded in the state with a speed faster than anticipated which was endorsed by Vice President, PHD Chamber, Mr. Anil Khaitan who was also present on the occasion with its Secretary General, Mr. Saurabh Sanyal.

Chairman, Haryana Committee, PHD Chamber, Mr. Pranav Gupta; President, Gurgaon Chamber of Commerce and Industry, Mr. Vikas Jain were also the participants during the occasion among others.

GST Bill will enhance GDP growth to double digits: PHD Chamber

While congratulating all the political parties in finding the common ground to amend the constitution for transition from tedious indirect taxes to a harmonised GST, Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry said that this historic move by the Government is commendable as India will move towards double digit growth trajectory in the next few years.

Currently, Indian economy is moving towards 8% growth in 2016-17 on account of various positivities such as good monsoon and uptick in the industrial activity, said Dr. Gupta.

GST will enhance India’s growth trajectory to 10% in the next few years by 2019-20.

However, states must be reaching agreement on the rates and processes to be adopted in the coming times, added Dr. Gupta.

GST would be beneficial for many policy reforms announced by the Government of India during the recent past, he said. Make in India program would also get a boost with improvement in ease of doing business by doing away with multiplicity of taxes and their cascading impact. GST will enhance production possibilities, attract FDIs and increase employment opportunities in the economy, added Dr. Gupta.

The implementation of GST will reduce the barriers between states and will make the country a common market, increase tax revenue for the states due to a wider tax base and better compliance, he added.

GST implementation will help in reducing tax evasion, enable greater control and facilitate efficient monitoring than the traditional taxation system. GST will create a common base and common rates across goods and services and reduce transaction costs, he said.

With the reduction in the compliance costs, our trade and industry will become more competitive leading to reduction in transaction costs, an increase in export competitiveness and lower domestic prices, added Dr. Gupta.

Going forward, the need of the hour is to spread awareness at a larger scale about the implementation procedure and advantages of GST to every citizen of the country, said Dr. Gupta.