Indian Merchants’ Chamber hosted an interactive ‘Open House Session on Exports and Imports’ where the distinguished speakers enlightened the participants about the policies and guidelines governing the exports and imports of goods and services.
Addressing the seminar on exports and imports at Hotel Ramada, Koparkhairne, N Shankar, Chairman and Managing Director of Export Credit Guarantee Corporation of India Ltd (ECGC) urged exporters to be competitive and increase market share. He said the ECGC was fully committed to providing the risk cover to their goods and services.
He said that the country’s share in world trade was just 1.7 per cent. India exported predominantly to the developed markets like the U.S. and the European Union, he said. These were in financial problems for the last two years, and were coming out of it now. Volatility of the rupee value was worrying and stability in exchange rates would help exports, he pointed out. He said that imports had started coming down, especially of precious metals and non-essential imports. The rupee depreciation would further contain imports. Exports were expected to cross the $ 325 billion this financial year.
N. Shankar said that the corporation had come out with three new products for small exporters, micro exporters and those who have export turnover of Rs.20-100 crore after getting approval from the Insurance Regulatory and Development Authority. He further informed that the ECGC had opened an overseas office in London.
Dr. Kavita Gupta, Additional Director General of Foreign Trade (DGFT) who has created systems to ensure transparency and efficiency has got the DGFT office certified as ISO 9001:2008, stated that once upon a time, India’s share to the world export was 40% which has regrettably fallen to little more than 2 percent.
Stressing the need to expand the foreign trade, she outlined with the help of slide show, the pivotal role played by DGFT in facilitating the foreign trade that involved export as well as import of the goods. The DFGT is involved in extending quick and transparent services to exporters under various schemes included in the Exim Policy, it also assisted exporters to reduce transaction time and costs, and eliminate intermediaries. She said her office strove to provide value added services to exporters through information and guidance. Besides, it leveraged information and communication technology, in-house expertise and coordination with other agencies to facilitate foreign trade.
She said that an all encompassing, comprehensive view needs to be taken for the overall development of the country’s foreign trade for India to become a major player in world trade. Kavita Gupta further observed, “While increase in exports is of vital importance, we have also to facilitate imports that are required to stimulate our economy”. Coherence and consistency among trade and other economic policies is important for maximizing the contribution of such policies to development, Dr Gupta said.
“Trade is not an end in itself, but a means to economic growth and national development, the primary purpose is not the mere earning of foreign exchange, but the stimulation of greater economic activity’, she said adding that DGFT was all for creating an atmosphere of trust and transparency to unleash the innate entrepreneurship of country’s businessmen, industrialists and traders besides simplifying procedures and bringing down transaction costs. The DGFT neutralised incidence of all levies and duties on inputs used in export products, based on the fundamental principle that duties and levies should not be exported.
Dr. Gupta said that DGFT facilitated technological and infrastructural upgradation of all the sectors of the Indian economy, especially through import of capital goods and equipment, thereby increasing value addition and productivity, while attaining internationally accepted standards of quality.
Quality infrastructure, road transportation, non-refund of VAT, law and order problem were identified as highly challenging areas Dr. Gupta and she underlined the need for art exhibition cum convention centre.
C. D. Shinivasan, chief general manager of RBI said that the apex bank was giving a philip to export. He said the RBI had now permitted third party payments for export and import transactions to further liberalize the procedure relating to payments for exports and imports and taking into account evolving international trade practices. He said the RBI had stipulated certain conditions like firm irrevocable order backed by a tripartite agreement should be in place; third party payment should come from a Financial Action Task Force compliant country and through the banking channel only; the exporter should declare the third party remittance in the Export Declaration Form; it would be responsibility of the exporter to realize and repatriate the export proceeds from such third party named in the EDF; in case of shipments being made to a country in Group II of Restricted Cover Countries like Sudan, Somalia, etc. payments for the same may be received from an Open Cover Country.
Srinivasan said it is obligatory on the part of the exporter to realise and repatriate the full value of goods or software to India within a stipulated period from the date of export within a period of twelve months from the date of export. Any extension of time beyond the above stipulated period may be granted by Reserve Bank of India, on case to case basis.
VV Vasudeva Murty, Chairman, Foreign Exchange Dealers of India (FEDAI) outlined the objectives saying the FEDAI is an association of banks specializing in the foreign exchange activities in India. It was created in 1958, he said adding that FEDAI determines many of the rules that overlook the day-to-day forex transactions in India. Besides, it assists member banks by acting as an advisor and helps with the training of personnel. It is responsible for accrediting India’s foreign exchange brokers and announcing the exchange rates to its member banks and liaison with RBI for reforms and development of forex market.
Capt Satish Kumar, Marine Advisor, JNPT threw light on the pivotal role being played by the JNPT in facilitating export and import of goods. He said the JNPT had emerged as the second busiest port in the country. Ever since contenarisation was taken up, things are delivered abroad without damage. He said there were three terminals and fourth would be set up soon. The fifth mega container terminal too has been proposed but will take time. Besides the JNPT has plans for multi-modal logistic park.
Mr David Sinate, chief general manager of Export-Import Bank of India threw light on the various initiatives of the EXIM bank in facilitating the export and import of goods in the country. He informed that Maharashtra was number one exporter state from India.
Earlier, Jewel of Navi Mumbai awards were conferred on late Dinesh D Parekh, ex-chairman of IMC. It was accepted by his son, Gautam. Another recipient of the Jewel of Navi Mumbai was Bhashkar Shah of JAPS international pvt ltd.
At the outset, Mr Shailesh Vaidya, president of IMC made a welcome speech. Yogesh Mehta, co-chairman of IMCspoke about the theme of seminar, R.K.Jain chairman of IMC, Navi Mumbai spoke about the work being done by IMC in Navi Mumbai, Anand Natrajan conducted the proceedings while Prabodh Thakker, vice president of IMC proposed a vote of thanks.
Navi Mumbai directory of IMC was also released on the occasion.
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