TRUCKS OPERATION EFFICIENCY WENT UP BY 250 KM A DAY POST GST- NCCD

The operational efficiency of trucks carrying agri and horticulture produce stored in various cold storages houses from beginning to end point has enhanced to an extent of 550 km a day post GST as most of inter-state and intra-state barriers have collapsed post GST implementation, the new taxation that has benefitted the most the logistics sector, according to CEO, National Centre for Cold Chain Development (NCCD), Mr. Pawanexh Kohli.

Mr. Kohli who is also Chief Advisor, Department of Agriculture, Cooperation & Farmers Welfare, however, stated that since a vast majority of agri and horti items are GST exempt, its ramifications on the cold chain sector so far have been quiet positive barring on a few fronts and his department is seeking their redressal with department of finance.

Speaking at a National Conclave on Cold Chain Development under aegis of PHD Chamber of Commerce and Industry here today, Mr. Kohli informed that the running efficiency of trucks have gone up by an average of 250 km a day post GST which used to be about 300 km a day pre GST on account of the fact that barriers relating to inter-state and intra-state trade have largely disappeared since July 1st this year.

According to him, the logistics sector has been beneficiary of GST implementation to a large extent but on account of higher service tax on certain segments, the logistics costs have gone up.  The tax  has also gone up considerably on equipment and other auxiliaries that go into making of cold chains and cold storages and since NCCD received certain inputs on these fronts, the Department of Agriculture is undertaking an exercise to seek their redressal with Department of Finance and other stakeholders so that the surfacing anomalies are corrected, he added.

Chairman, Committee on Logistics Management, PHD Chamber, Mr. R S Bedi in his welcome remarks emphasized on further expansion of cold storages adding that these need to be modernized with increased capacities as the growth of agriculture and horticulture also depend on these facilities to equip farmers with gains that are consumerate to their labour.  The Conclave was moderated by Director, PHD Chamber, Dr. Ranjeet Mehta.

Bitcoins potential tool to boost digital economy but fraught with risks: PHD Chamber

While releasing a survey study on Industry Perspective on Bitcoins, Mr. Gopal Jiwarajka, President, PHD Chamber of Commerce and Industry said Bitcoins could act as a potential transaction and payment mechanism for businesses given proper monitoring and regulation of the currency.

However, absence of the information about counterparties in the bitcoins transaction is a major drawback and may lead to unintentional transactions such as money laundering, said Mr. Gopal Jiwarajka.

Bitcoins are fraught with risks and not backed by any tangible asset but by sheer demand, he said.

PHD Chamber of Commerce and Industry organized a roundtable discussion on Industry Perspective on Bitcoins to know about the industry perspective about the prevalence of bitcoins in the system.

The survey study released cited that though lot of awareness about bitcoins is there in the system but there are hardly any users of this formula.

The prices of the bitcoins jumped from USD 100 in June 2013 to USD 3025 in June 2017. The number of bitcoins increased from 5 million in 2010 to 17 million in 2017.

Bitcoins are a fascinating instrument however highly volatile and susceptible to high risk makes it a vulnerable instrument, said Mr. Jiwarajka.

Bitcoins have gained tremendous ground on global financial investments in the recent years, he said.

Proper vigilance and directives to regulate the crypto-currency could boost the digital ecosystem in the country, said Mr. Jiwarajka.

Low transaction cost for bitcoins makes it a highly demanded instrument for digital transactions in the recent times, said Mr. Gopal Jiwarajka.

There is a high possibility that the world of bitcoin may expand, on the back of greater acceptance rate for bitcoins in the recent years, said Mr. Jiwarajka.

Eliminating the risks and having a regulatory mechanism could make this a viable option for promoting it as a digital currency in the country, said Mr. Gopal Jiwarajka

​

MOVE ON & FORGE AHEAD WITH AFRICAN COUNTRIES, ADVISES GEN. SINGH TO INDIA INC. AT PHD CHAMBER

Minister of State for External Affairs, Gen. (Dr.) V K Singh on Friday asked India Inc. to move on and forge ahead their business ties with African countries as these offer tremendous business opportunities to scaling up business on grounds of mutual benefits.

The Minister also called upon the indigenous industry to come out with an exclusive solution map to further enhance on and facilitate the existing economic and business ties between India on the one hand and entire African union on the other rather than finding faults with terms of trade that may sometime hinder their trade prospects.

Addressing 3rd Annual International Conference & Exhibition on Africa – A Land of Opportunities under aegis of PHD Chamber of Commerce and Industry here today, Dr. Singh emphasized, articulating that there could be few loopholes in existing terms of trade so far as economic engagements between India and African countries are concerned.

However, these should not lead to halt the growing trade and economic ties between India and African countries even temporarily and that the businesses of both the sides should focus on moving on and forging ahead, said Dr. Singh calling upon the industry associations such as PHD Chamber to come out with a solution map so that such issues are resolved and businesses move on as usual.

Dr. Singh felt that the African countries provide for huge material resources to their Indian business counterparts with plenty of opportunities for wealth creation for both the peoples and Indian industry should reciprocate so that the business transactions acquire a conclusive proportion to the benefit of the two.

Ambassador, Embassy of the State of Eritrea & the Dean of Heads of African Missions in India, Mr. Alem Tsehaye who also spoke on the occasion stressed that since India and African countries enjoy the historic legacy, their trade multiplication should happen at rapid pace.

In his welcome address, President, PHD Chamber, Mr. Gopal Jiwarajka also felt that given the closeness of the peoples of India and African union, the pace with which the economic ties are growing currently, need a review so that the full potential is realized.

Among others who were also present on the occasion consisted of Interim Director General, International Solar Alliance, Mr. Upendra Tripathy; Chancellor, S-VYASA & President, VYASA, Dr. H R Nagendra; Chairman, International Affairs Committee for Africa & Middle East, PHD Chamber, Mr. Ranjeet Chaturvedi and its Secretary General, Mr. Saurabh Sanyal.

REMOVE GST ON INTERNATIONAL FREIGHT AS IT WILL STIFLE AIR CARGO GROWTH: PHD CHAMBER

PHD Chamber of Commerce and Industry on Wednesday urged the government not to impose GST on international freight as air cargo trade is already facing many challenges and that such a taxation is also not in vague in economies of scale and therefore, why make India an exception on this front.

The Chamber has argued that at a time when domestic civil aviation industry anticipates that India will be among the 10th largest international freight market by 2018, with domestic Indian air cargo increasing by 7.3% as per current estimates over the 2016 rate, subjecting international freight at 18% GST is totally unfair as it will stifle the growth of air cargo.

The aforesaid recommendations were made by the Chamber at its Air Cargo Summit-2017: Growth of Air Cargo Logistics in Changing Times which was presided over by Chairperson, Airports Economic Regulatory Authority of India, Mr. S Machendranathan and moderated by President, PHD Chamber, Mr. Gopal Jiwarajka in which Economic Advisor, Ministry of Civil Aviation, Ms. Vandana Aggarwal; Chairman, Civil Aviation Committee, PHD Chamber, Mr. K Narayana Rao and its Co-Chairmen, Mr. Vipin Vohra and Mr. Bhupesh Joshi were also present along with its Director, Mr. Yogesh Srivastav.

The Summit pointed out that all over the world,  International freight is not taxable adding that Indian exporters need not be burdened with wrongly interpreted GST tax on International freight.  This is based on well accepted principle that goods and services are exported but not taxed.

“Why would the government of India want Indian exporters to pay extra 18% GST on freight and make our goods non-competitive in international market”, asked the Summit,  stressing that even if GST to exporters are refundable by CENVAT credit, it is incorrect as again cost of export go up by financing GST and taking the refund as an administrative and financial cost.  Indian exporters are again at a disadvantage if this is the case. Hence GST should not applicable on international freight, further contended the Summit.

The Chamber further held that the aviation logistics in the country today, particularly for export cargo, and equally for the domestic cargo, is confronted with multitude of serious issues like inordinate dwell times, missing and non-traceable cargo, damaged cargo, lengthy cargo processing times and queues of trucks at the cargo terminals, etc. Air cargo infrastructure in India is woefully inadequate and overloaded.

It has further highlighted that the procedures mandated by multiple agencies stifle innovation and growth besides causing inefficiency in the system.  Existing procedures have not yet been aligned with the technological progress which has become international best practices. Missing Cargo/non-traceability of cargo in terminals has assumed undesirable proportions. This has serious implications for not only timely delivery of cargo but also in terms of security and image of the country in international trade.

Thus, the need of the hour, therefore, is to streamline the procedures for movement of domestic air cargo and simplification of procedures for safe transit and timely delivery. Also, the Govt. should encourage competition by introduction of Domestic Freighters on trunk routes, where at the moment only one airline is operating. This step will also reduce the cost of carrying the goods and the bottlenecks in the present system.

ELIMINATE COLLATERAL CONDITIONALITY FOR WOMEN ENTREPRENEUR AND REPLACE HONORIFIC ‘SENIOR CITIZEN’ WITH ‘WISER CITIZEN’ FOR ELDERS: PHD CHAMBER

PHD Chamber of Commerce and Industry on Tuesday asked the government of the day to remove collateral conditionality for women entrepreneur from the Redbook so that banks and financial institutions aggressively come forward to part finance their Startup ventures since a vast majority of these are ill equipped to submit such a documentation in their maiden attempts to seek fiscal aid from them.

In addition, it has also sought a replacement for honorific such as ‘Senior Citizen’ with a ‘Wiser Citizen’ for elderly people, exceeding age of 60 as this expression does not invoke the required veneration that the lot of this age amply deserves and many a time has a negative connotation to reflect on their mellowed wisdom.

The aforesaid recommendations were made by the President, PHD Chamber, Mr. Gopal Jiwarajka at a Women Startup Summit-2017 that was held here today under its ages in which the presiding officer was Chairperson of National Commission for Protection of Child Rights, Ms. Stuti Kacker among a few women startups as also Chairperson, Women & Child Development Committee, PHDFWF, Ms. Anuradha Goel.

The Chamber felt that producing collateral related documents to banks and financial institutions by most of women entrepreneurs is a tedious task due to cumbersome procedures relating to inheritance disadvantages and obstructions that follow thereafter and therefore, this age old rule needs to be given a handsome burial at an age in which startups and particularly women entrepreneurs have begun to outshine their male business counterparts.

Likewise, expression such as ‘Senior Citizen’ for elderly people should also be replaced with the suggested honorific ‘Wiser Citizen’ to broad-base its connotation and outreach in emerging and evolving times as a great deal of them are reigning in with great sense of responsibility and accountability both at policy making worldwide as well in terms of generating wealth with a nurturing sense, said Mr. Jiwarajka.

Among other who also spoke on the occasion comprised Proprietor, P‘n’A Industries, Ms. Anju Bajaj; Fashion Designer, Ms. Rina Dhaka; Partner, Little Farms Co., Ms. Niharika Bhargava; Co-Founder, SquadRun Inc, Ms. Kanika Jain; Invest India, Startup India Hub, Ms. Jasleen Kaur Lamba and Secretary General, PHD Chamber, Mr. Saurabh Sanyal.

A Good Time to Reduce the Repo Rate: PHD Chamber

We appreciate the efforts of the Government to tackle the inflationary scenario which has come down significantly from 6.1% in July 2016 to the level of 1.5% in June 2017. WPI inflation has also decelerated from 3.3% in January 2017 to 0.9% in June 2017, said Mr. Gopal Jiwarajka, President, PHD Chamber of Commerce and Industry.

However, despite the significant deceleration in inflation rate, the repo rate is still high and growth of industry and manufacturing sector is in the lackluster trajectory, said Mr. Jiwarajka.

Growth in industry output, as measured in terms of IIP, for the month of May 2017 grew only at 1.7% of which the growth of manufacturing sector stands at 1.2% in the same period, he added.

The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) fell to a four month low of 50.9 in June 2017 from 51.6 in May 2017, signalling a subdued improvement in the manufacturing sector.

So, at this juncture rate cut becomes inevitable to support the industrial growth and to enhance the competitiveness of the manufacturing sector, said Mr. Jiwarajka. 

Now, almost all the factors are favourable such as good monsoon behavior, inflation is under control and GST is implemented, he said.

Considering the good monsoon behavior supported by reforms in the supply side, we believe the inflation should not be more than 4% in the current financial year 2017-18, said Mr. Jiwarajka.

It is inspiring to know that India’s inflation rate is lower as compared to various advanced and emerging economies such as United States of America (USA), Germany, South Africa, Brazil and Russia, he said.

However, interest rates in India are much higher than USA, Germany, China and Singapore, he said.

It has been observed that USA have lower inflation rate (1.6%), but at the policy front, interest rates in the country is also low at 1.25%. Similarly in the case of China and Singapore, the inflation and interest rates are in the lower trajectory.

RBI reduced repo rate by 25 basis points in October 2016, however, industry was expecting a rate cut at so many junctures. Firstly, at the time of demonetization, secondly at the time of fiscal consolidation measures announced during Union Budget 2017-18 and thirdly at the time of good monsoon in July 2017, said Mr. Jiwarajka.

Going ahead, we expect atleast 25 basis points cut in repo rate from 6.25% to 6.0% in the forthcoming third bi-monthly Monetary Policy 2017-18 due on August 02, 2017 and further, 25 basis points cut in repo rate by December 2017.

Share of top ten export destinations increased from 49% to 51.6% : PHD Chamber

Despite slowdown in World exports, India’s export growth remained intact with USA

India’s exports to top ten destinations have gained strength as the share of top ten destinations has increased to 51.6% in 2016-17 from 49% in 2013-14 said Mr. Gopal Jiwarajka, President, PHD Chamber of Commerce and Industry.

The decline in exports growth rate was also less with top ten destinations as compared with rest of the economies.

Export volume to top ten export destinations declined 7.7% from US $ 154.05 billion to 142.55 billion in 2016-17 whereas export volume to rest of the economies declined 16.6% from US $ 160.36 billion in 2013-14 to US $ 133.73 billion in 2016-17.

India’s overall merchandise exports declined 12% during the same period from 2013-14 to 2016-17 from US$ 314 billion to US $ 276 billion.

Despite overall slowdown in exports growth, it is inspiring to know that India’s merchandise exports to USA grew from US $ 39.14 billion in 2013-14 to US $ 42.33 billion in 2016-17 showing a growth of 8.1% with the World’s largest economy, said Mr. Jiwarajka.   However, India’s exports to China declined 31% from US $ 14.82 billion in 2013-14 to US $ 10.2 billion in 2016-17.

Nearly 53% of the India’s  exports to USA are in the form of consumer goods, followed by intermediate goods (29%), capital goods (12%) and raw materials (6%).

India and USA have consistently increased their intra-industry trade over the last many years, said Mr. Jiwarajka.

Going ahead, scope for enhancing the present intra-industry trade between India and USA is immense, he said.

India’s products’ export pattern has grown tremendously in tandem with the import pattern of USA. The alignment has recently witnessed a jump in 2016 indicating the demand pattern of USA has been inclined more and more in favour of supply pattern of India, he added.

Considering the steady trade pattern with USA, our exports to USA are seen at US $ 50 billion by the next financial year 2018-19, said Mr. Gopal Jiwarajka

Exports to UAE also increased from USD 30.52 billion in 2013-14 to US $ 31.3 billion during the same period showing a growth of 2.5%, said Mr Jiwarajka.

Hong Kong has superseded China as the 3rd biggest export destination for India on the back of rising demand of Indian products in Hong Kong. 

India’s exports to Hong Kong grew 11.2% from US $ 12.73 billion in 2013-14 to US $ 14.2 billion in 2016-17, he said.

Going ahead, we are hopeful that our exports will touch US $ 325 billion mark in the current financial year 2017-18, said Mr. Gopal Jiwarajka.