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Annual Report 2010-2011
Export Promotion Measures

1. Assistance to States for Development of Export Infrastructure and Allied Activities (ASIDE) Scheme

In pursuance of the EXIM Policy announcement in March, 2000, the ASIDE scheme was launched on 13.3.2002.

The basic objectives of the Scheme are:-

  1. To involve the States in the growth of export by providing incentive-linked assistance to the State Governments.
  2. To create appropriate infrastructure for the development and growth of exports.

Prior to the launch of ASIDE scheme, the Department Of Commerce (DoC) had been implementing four infrastructure development schemes viz. the Export Promotion Industrial Park Scheme (EPIP), Export Promotion Zones Scheme (EPZ), the Critical Infrastructure Balancing Scheme (CIB) and the Export Development Fund (EDF) for the North-East and Sikkim. The new Scheme subsumed the aforementioned ongoing Central Schemes in order to give a boost to development of export related infrastructure.

ASIDE is a Centrally Sponsored Plan scheme. It provides outlay for development of export infrastructure, which is distributed among the States, inter alia, on the basis of the States’ export performance in the previous year.

The outlay of the scheme has two components: 80% of the funds (State component) are earmarked for allocation to the States on the basis of the approved criteria. The balance 20% (Central component), and amount equivalent to un-utilized portion of the funds allocated to the States in the past year(s), if any, is retained at the Central level for meeting the requirements of inter-state projects, capital outlays of SEZs, activities relating to promotion of exports from the North Eastern Region as per the existing guidelines of the Export Development Fund and any other activity considered important by the Central Government from the regional or national perspective.

At the Central Level, an Empowered Committee under the chairmanship of the Commerce Secretary with representatives of other Departments, approves and monitors the projects under the Central Sector. This Empowered Committee also periodically reviews the progress of the scheme and takes steps to ensure achievement of the objectives of the scheme. At the State Level, a State Level Export Promotion Committee (SLEPC) headed by the Chief Secretary of the State and consisting of the Secretaries of concerned Departments at the State level, a representative of the States Cell of the Department of Commerce (DoC), the Joint Director General of Foreign Trade posted in that State/ region and the Development Commissioner of the SEZ’s in the State scrutinizes and approves specific projects and oversees the implementation of the scheme.

The funds are disbursed directly to a Nodal Agency nominated by the State Government where it is kept in a separate financial head in the accounts of the Nodal Agency. The specific purposes for which the funds can be sanctioned and utilized under the Scheme as per the approved criteria are:

  • Creation of new Export Promotion Industrial Parks/Zones (including Special Economic Zones (SEZs)/Agri-Business Zones) and augmenting facilities in the existing Zones.
  • Setting up of electronic and other related infrastructure in export enclaves.
  • Equity participation in infrastructure projects, including the setting up of SEZs.
  • Meeting the requirements of capital outlay of EPIPs/SEZs.
  • Development of complementary infrastructure such as roads connecting the production centres with ports, setting up of Inland Container Depots and Container Freight Stations.
    Stabilizing power supply through additional transformers and islanding of export production centres, etc.
  • Development of minor ports and jetties of a particular specification to serve exports.
  • Assistance for setting up Common Effluent Treatment Plants.
  • Projects of national and regional importance.
  • Activities permitted as per the Export Development Fund in relation to the North East and Sikkim.

Rs.2,050 crore was spent under this scheme during the 10th Five Year Plan (2002-2007).During the 11th Five Year Plan, an outlay of Rs.3,793 crore was approved for the Scheme. The allocation for financial year 2010-11 is Rs.662.98 crore. The details of the funds released under ASIDE during 2002-03 to 2010-11 are given in Table 4.1. Details of funds released under ASIDE for 2002-03 to 2010-11 to various States and the North Eastern Region is given in Table 4.2 and 4.3 respectively.

Table: 4.1
Outlay and Sanctions/Releases under ASIDE

(Value in Rs. Crore)

Year
Total Outlay
Sanction/Release to States (including N.E. Region
Sanction/ Release in the Central Sector
Total
Sanction/ Release under ASIDE
2002-03
325.46
241.00
84.46
325.46
2003-04
350.00
252.00
98.00
350.00
2004-05
424.88
313.84
111.04
424.88
2005-06
500.99
383.00
117.99
500.99
2006-07
450.00
358.92
90.25
449.17
2007-08
569.00
439.99
129.01
569.00
2008-09
570.00
437.84
131.40
569.24
2009-10
570.00
433.93
136.07
570.00
2010-11
662.98
400.00
75.59
475.59*

*As on 10.1.2011
Source: Department of Commerce




Review and Monitoring of the Implementation of ASIDE scheme

The progress of the Scheme in States is closely monitored by States Cell of Department of Commerce. Following mechanisms have been put in place to ensure effective monitoring and review:-

(i) Web Enabled Monitoring System (WEMS)– A web-enabled monitoring system of the projects has been developed on the website of the Department for online assessment of the progress of the projects. In this system, there is an entry module and a reporting module. In the entry module, the Nodal Agency of the respective State Govt./UT administration enters details of the projects approved by the concerned SLEPC and also the physical and financial progress pertaining to each project on quarterly basis. In the report module the administrative division in the Ministry enters the details of funds released from time to time. Based on the two entries a report is generated regarding utilization of funds and also un-utilized balance left with the Nodal Agency. In the entry module, there is also provision for entering the period for which Utilization Certificates (UCs) have been submitted to the Department. While considering further release it is ensured that all the UCs which were due for rendition have been received and also the Nodal Agency do not have substantial un-utilized balance from the previous releases.

(ii) Physical verification of the projects sanctioned under the scheme - The projects sanctioned under ASIDE are visited by field formations of Department of Commerce who submit consolidated report in the prescribed format to the Department, State Government, and the nodal agency of the State for appropriate action. Senior Officers of the Department of Commerce have been made Nodal Officers and allocated certain States/UTs for on-the-spot inspection of the projects being implemented with ASIDE funds.

(iii) Review Meetings- Review meetings are held at the senior level in the Department with Nodal Agency of States/Central Agencies/DCs, SEZ etc. to review various aspects of the implementation of ASIDE.

Mid Term Appraisal of the Scheme

  • A mid-term appraisal of scheme during 11th Five Year Plan has been commissioned to IL&FS; the draft report has been received. Salient findings of this report are as under:-
  • During current appraisal process it has been now established that there has been an upswing in exports from States and in concomitance there has been an upswing in allocation, sanction and utilization and number of projects being implemented.
  • Exports have more than doubled in the last four years and although the increase in exports cannot be attributed solely to ASIDE, the scheme has contributed substantially to export efforts. In fact, most of the states are now warming up to the scheme, having understood and grasped benefits of leveraging ASIDE funds.
  • A quantum jump in allocation of funds is imperative if substantial improvements are to be expected in infrastructure, and therefore, exports.

Achievement under the Scheme

Basic objective of the scheme is to involve the States / UTs in export efforts by providing incentive-linked assistance to concerned Governments and to create appropriate infrastructure for development and growth of exports. It has been possible to achieve this in spite of various constraints as is evident from active participation of States/UTs in sponsoring a large number of export related projects for assistance from ASIDE Scheme. Efforts have also been made by them to leverage ASIDE funds for taking up several projects. Demands received far outweigh availability of funds.

Under the state component a total number of 1,266 projects worth Rs. 20,096.92 crores have been approved by the State Level Export Promotion Committees (SLEPCs) since 2002-03 to 2010-11 (upto). Out of this Rs. 4,849.20 crore only has been proposed by State Govt./UTs to be met from the ASIDE funds released to them under the state component and the balance of Rs. 15,247.72 crore have been/are being leveraged from State Govt/UTs contribution and other sources identified by the State Govt./UTs.

Similarly under central component a total of number 380 projects worth Rs. 2,072.36 crore have been approved so far and out of that Rs. 1,174.51 crore only has been/ is to be funded from the central component of ASIDE scheme. Balance Rs.898.85 crore has been/is being leveraged from other sources including states, private partnership and agencies of states. Thus in the project under central component of the said scheme also it has been possible to involve states/central agencies.

During 2009-10, 122 projects worth Rs 1147.68 crore were approved by State Governments under ASIDE scheme by the State Level Export Promotion Committees (SLEPCs). Out of this Rs. 554.89 crore only has been proposed by state govt./UTs to be met from the ASIDE funds and the balance of Rs. 592.79 crore have been/are being leveraged from State Govt/UTs and other sources identified by the State Govt./UTs. Similarly in the central component a total of number 40 projects worth Rs. 187.99 crore have been approved so far and out of that Rs. 139.07 crore only has been/ is to be funded from the central component of ASIDE scheme. Balance Rs. 48.92 crore has been/is being leveraged from other sources including states, private partnership and agencies of states.

Incentive Scheme

Guidelines to incentivize better performance amongst States / UTs within existing framework of ASIDE Scheme have been issued. As per incentive scheme guidelines 10% of ASIDE annual allocation would be set aside for the incentive scheme wherein funds out of State Component of ASIDE will be for States other than NER (North Eastern Region i.e. 8 North Eastern States including Sikkim) and the same out of Central Component for NER States. The projects recommended by eligible performing States Govt. / UT administration will be considered for sanction over and above allocation to States / UTs. Proposals from eligible State Govt. / UTs administration for consideration in the current financial year has been sought by DoC.

II. Infrastructure Support

Department of Commerce endeavors to provide transport/logistic support to India’s foreign trade through coordination and resolution of problems experienced by the trading community in carriage of goods by courier, sea, air, rail and road with the concerned Ministries & Departments. It seeks to encourage greater containerization, computerization of cargo clearance and electronic data interchange, warehousing, setting up of Air Cargo Complexes (ACCs), Inland Container Depots (ICDs), Container Freight Stations (CFSs) etc.

In order to resolve the infrastructural constraints being faced by exporters / importers on infrastructural front, Department of commerce has been taking up the matter with Ministry of Shipping, Ministry of Road Transport and Highways, Department of Revenue, Ministry of Civil Aviation, Ministry of Railways etc.

The following steps have been taken by Department of Commerce for trade infrastructure development and trade facilitation:-

A.    Standing Committee on Promotion of Exports by Sea (SCOPE-Shipping) and Standing Committee on Promotion of Exports by Air (SCOPE-Air)

  • Two high level committees, viz. the Standing Committee on Promotion of Exports by Sea (SCOPE-SHIPPING) and the Standing Committee on Promotion of Exports by Air (SCOPE-AIR) are functioning under the Chairmanship of the Additional Secretary (Infrastructure), Department of Commerce. The objective of these committees is to address constraints in the smooth movement of international cargo and resolve problems of exporters concerning Customs, Containerisation, Air, Shipping & Railways related issues. The meetings of these two Committees are normally held every year. Since the year 2004, five meetings of these committees were held. The last meetings of SCOPE-Shipping and SCOPE-Air were held in October & December, 2009 in New Delhi.
  • Several issues relating to bottlenecks in trade by sea, air, rail and road are discussed in the above meetings and necessary directives are given by the Chairman of the Committee to sort out the prevailing problems.

B. Inter Ministerial Committee (IMC)

  • Single Window Clearance for the proposals for setting up of Inland Container Depots/Container Freight Stations/ Air Cargo Complexes (ICDs/CFSs/ACCs) is given through an Inter-Ministerial Committee (IMC) functioning since 1992 under the Chairmanship of Additional Secretary (Infrastructure Division), Department of Commerce. In 2010-11 (upto December, 2010), 18 Letters of Intent (LOIs) have been issued for setting up of ICDs/CFSs across the country.

C.    Core Group of Secretaries (CGS) for resolving issues relating to Infrastructure required for exports and imports

A Core Group of Secretaries (CGS) under the Chairmanship of Cabinet Secretary was constituted on 21.4.2008 to deal with the issues relating to infrastructure required for export and import. The Core Group recommends measure to remove the bottlenecks in infrastructure, especially critical infrastructure at ports, airports, railways and roads. CGS also reviews functioning of service providers at ports / airports / LCSs, etc. with a view to identifying procedures / systems that inhibit trade. So far three meetings of CGS have been held. Last meeting of CGS was held under the Chairmanship of Cabinet Secretary on 1st November, 2010. A number of decisions were taken in the meeting to improve infrastructure required for exports and imports.

D.    Resolution of problems faced by trade

Besides above measures, other important residual issues which are raised by the associations / organizations of exporters / importers about reported difficulties being faced by shippers/ exporters while importing / exporting consignments resulting in enhanced transaction cost on account of arbitrary and exorbitant charges by shipping lines, consolidators, freight forwarders and other service providers such as collusive price fixing by the service providers at ports / airports and cartelization of the shipping liners resulting in sharp cost escalation, congestion at various ports, lack of suitable infrastructure, poor planning and congestion at ports have been taken up at appropriate level by the Department of Commerce from time to time.

III. Market Access Initiative (MAI) Scheme

The Market Access Initiative (MAI) Scheme is a Plan scheme formulated to act as a catalyst to promote India’s exports on a sustained basis, based upon ‘focus product’ and ‘focus market’ concept. Under the Scheme, assistance is extended to the Departments of Central Government and organizations of Central/State Governments, Export Promotion Councils, Registered Trade Promotion organizations, Commodity Boards, recognized Apex Trade Bodies and Recognized Industrial Clusters and individual Exporters (only for product registration and testing charges for engineering/Pharmaceuticals products abroad). The scheme was revised after a thorough review with extensive consultation with all the stake holders in the year 2006 and revised Scheme was launched with effect from January, 2007. During the year 2010-11, so far 239 projects/studies including 13 “India Shows” were approved for receiving assistance under the scheme (Table 4.4). Year-wise status of MAI allocation/release is at Table 4.5.

 


“Challenge Fund” for Export Promotion Activities by Indian Missions abroad

To enable the Indian Missions abroad to better coordinate, synergise and facilitate our export promoter activities, “Challenge fund” was set up under the Market Access Initiative (MAI) scheme. Under the scheme Indian Missions would ‘bid’ for support from the Fund by submitting innovative export promotion project proposals, with priority for focused, specific projects with quantifiable/tangible results.

The above innovation was aimed at achieving the objective of further involving the Indian Mission abroad in the export promotion activities under the MAI scheme of the ministry of Commerce. Under the scheme the outline of the project shall be prepared by the commercial wing of the Mission under the guidance of High Commissioner / Ambassador. Each financial year, upto 50 projects shall be approved and implemented within an expenditure ceiling of Rs.10.00 lakhs per project.

The project may have a local partner (Chamber of Commerce, Industry Association, Business School, etc.) in the country of implementation and one or more stakeholders (EPC, Export Promotion Agency) in India, with the application to be made by the sponsoring Mission in the prescribed format under MAI guidelines.

IV. Marketing Development Assistance (MDA) Scheme

To facilitate various measures being undertaken to stimulate and diversify the country’s export trade, Marketing Development Assistance (MDA) Scheme is under operation through the Department of Commerce. The scheme supports the following export promotion activities:

  • Assist exporters for their participation in approved EPC/Trade Promotion Organisation led export promotion events abroad
  • Assist Export Promotion Council (EPCs) to undertake export promotion activities for their product(s) and commodities.
  • Assist approved organisations/ trade bodies in undertaking exclusive nonrecurring innovative activities connected with export promotion efforts for their members
  • Assist Focus export promotion programmes in specific regions abroad like FOCUS (LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN + 2) programmes.
  • Residual essential activities connected with marketing promotion efforts abroad.
    Status of MDA release/allocation is at Table 4.6.


V. Export Credit Guarantee Corporation of India Limited (ECGC)

The Export Credit Guarantee Corporation of India Ltd. (ECGC) was set up in 1957 under the Companies Act, 1956. It has the primary objective of supporting the country’s exports by extending Insurance and Guarantee facilities to the Indian exporters and the commercial banks. The paid up capital at the end of 2009-10 is Rs. 900.00 crores. ECGC has registered itself with the IRDA on 27th September, 2002.

There were 13,429 short-term policies including transfer guarantees and 46 long term policies, in force on 31.03.2010. The total value of shipment declared under the schemes (short-term policies, transfer guarantees, domestic credit insurance and factoring) amounted to Rs.85,686.85 crores as compared to Rs.68,866.34 crores in previous year, recording a growth of 24.42%.

The total claims paid during the year 2009-10 amounted to Rs.641.73 crores as compared to Rs.451.41 crores in the previous year. During the year, a total sum of Rs. 133.60 crores was recovered as compared to Rs. 208.58 crores in the previous year.

The total premium income from all the schemes of ECGC during the year amounted to Rs.812.99 crores as compared to Rs. 744.68 crores in previous year. This premium income of ECGC mainly comprises of Short Term ECIB Business, accounting for 59.91% of the total premium income, followed by Short Term Policy sector including factoring, which contributed 35.59%. The income from medium and long term sector accounted for just 4.50% (Rs. 36.79 crores) of the total premium income. During the year ECGC achieved a growth of 9.17% under premium income.

During the year, the Corporation maintained same rates of premium, which was reduced by an average 10% in August 2007, across all sectors of business despite adverse developments in the major export destination markets due to the onset of global recession benefiting the export community.

ECGC covers exports to 237 countries. The top five countries covered by ECGC during the year were USA, UK, Germany, UAE and Italy. They represent about 41.80% of its total cover. Engineering goods, Readymade garments, Leather and leather manufactures, Cotton (Fibre, Yarn, Fabrics & Made Ups) & Handloom, Basic Chemical, Pharmaceuticals & Cosmetics are the top five commodities covered by ECGC during the year. These aggregate to Rs.24,000 crores, representing 50% of the total value covered by ECGC during the year.

The Corporation paid total dividend of Rs. 12.57 crores including dividend distribution tax for the year 2009-10 as compared to Rs. 210.59 crores total dividend paid during the previous year.

ECGC continued to receive Indira Gandhi Award for official language implementation for the fourteenth time successively. ECGC has achieved good rating under its annual Memorandum of Understanding signed with the Ministry of Commerce & Industry for the year.

VI. National Export Insurance Account (NEIA)

A separate Fund with an approved corpus of Rs.2,000 crore called the National Export Insurance Account (NEIA) was set up in 2006, out of which Rs.886 crores have been funded by the Government so far. During the year 2009-10, Rs.150 crores allocated for NEIA has been released. The present corpus of NEIA is Rs.1,055.40 crores (constituting premium and interest accrued), which has been invested in fixed deposits with banks.

The objectives of NEIA is to promote project export from India, which may not take place but for the support of a credit risk insurance cover which the ECGC is not in a position to provide because of its own underwriting capacity. The NEIA is maintained and operated by a Public Trust set up jointly by the Department of Commerce and ECGC.

The objectives of NEIA were expanded by the Government in December, 2008, in view of the Global Financial Crisis, to also provide for short term cover and use of NEIA funds upto Rs.350 crores for the financial years 2008-09 and 2009-10, to mitigate the effects of global financial crisis. An amount of Rs.3.42 crores has been paid to 204 policyholders (exporters) as additional claim under the above scheme.

During the year NEIA guidelines were revised to provide risk cover for buyer credits which may be extended by EXIM Bank to overseas agencies. Under the revised guidelines projects which are backed by sovereign guarantees will be covered for 100% of value, without recourse, to deserving exporters. Provisions have also been made to cover the risks arising due to exchange and interest fluctuations.

VII. The Federation of Indian Export Organisation (FIEO)

The Federation of Indian Export Organisation (FIEO) was set up in 1965 as an Apex body of export promotion organisations and institutions in the country registered under the Societies Registration Act XXI of 1860 with its headquarters in Delhi and regional offices in Delhi, Mumbai, Chennai and Kolkata. FIEO has been serving as a platform of interaction between exporters and policy makers, and has been instrumental in promoting the efforts of Indian exporting community. It is an ISO 9001 – 2000 certified organisation.

The main objective of FIEO is to render an integrated package of services to various organizations connected with export promotion. It provides the content, direction and thrust to India’s global export effort.  It also functions as a primary servicing agency to provide integrated assistance to its members comprising professional exporting firms holding recognition status granted by the Government, consultancy firms and service providers.

Organisations like the Export Promotion Councils, Commodity Boards, Chambers of Commerce, Export Houses, Trading Houses, Consultancy Organisations & Trade Associations etc. constitute the membership of FIEO.

In terms of the Foreign Trade Policy, FIEO has been designated as Registering Authority for status holder exporting firms and other exporters dealing in multi-products. The Federation also organizes seminars, Open House Meets, Interactive Sessions and arranges participation in various exhibitions in India and abroad. Besides, FIEO provides e-platform to buyer/sellers through huge network of members and non-members, and also organizes India Shows, Trade Fairs and Exhibitions across the globe, particularly in untapped countries. It also brings out monthly bulletin ‘FIEO News’ to keep its members abreast with policy updates, changing market trends, upcoming export opportunities etc. besides informing them about its activities.  Moreover FIEO News disseminates commercial intelligence gathered from various primary sources.

VIII. India Brand Equity Foundation (IBEF)

India Brand Equity Foundation (IBEF) is a public-private partnership between the Ministry of Commerce and Industry, Government of India, and the Confederation of Indian Industry (CII) which came into being with effect from 3rd March, 2004. IBEF aims to promote India as a business opportunity by creating positive economic perceptions of India globally as well as effectively present the India business perspective and leverage business partnerships in a globalised market-place.

Over the years, the India Brand Equity Foundation (IBEF) has emerged as a credible source for information on Indian business and economy, powered by its website www.ibef.org. India business kits – comprising the ‘India Now’, a perspective magazine and the ‘Experience India’ CD – are available in Russian, French and Spanish, for dissemination at various national and international fora. An important initiative by IBEF is its Experience India programme, under which visits of business students, academicians and journalists are facilitated for interactions with stakeholders across the spectrum of the Indian economic landscape. Interactions during their visits comprised meetings with industry associations, government officials and public sector companies, etc., with discussions spanning bilateral business and trade relations. IBEF has always been an active participant in World Economic Forum (WEF) events as they present an opportune time and audience for its core message.

IX. eTRADE Project

The project entitled “Electronic Trade (eTRADE)” is pursued by this department in various trade regulatory and facilitating agencies like DGFT, Customs, Seaports, Airports, Container Corporation of India (CONCOR), Banks, carriers, importers, exporters, agents to facilitate efficient and effective mode of transacting business in the area of foreign trade. The services covered under the project are electronic delivery of services in online environment i.e electronic filing/clearance of export/import documents, e-Payment of duties, charges (handling/freight etc.) and the electronic message exchange between community partners.
Major developments during the year are as follows:

The digitally signed electronic message exchange between Customs and DGFT for Annual Advance authorization and Duty Free Import Authorisation is being finalized. The message exchange between DGFT and Customs for DEPB, DES and EPCG schemes is already operational for all EDI ports.

The Centralized Port Community System (PCS) which is operational at major seaports to provide single window interface is now being extended to other non-major seaports. Other seaports like Mundra, Dahej, Pipavav and Gangavaram, which contribute the big share in terms of traffic of non-major seaports, are at an advance stage of implementation.

The electronic Express Courier Clearance System has been started at the airports of New Delhi and Mumbai. This would facilitate the faster clearances of express courier consignments.

The Customs has implemented the Central Server system for which roll out has already been done at around 90 locations. A total of 115 locations are planned to be covered by Customs under central server system in current phase. The implementation of message exchange with community partners under central server environment is under process.

The new version of the Risk Management System (RMS 3.1) under central server environment has been started at around 50 EDI locations.

To enhance the ePayment usage, Customs is integrating ePayment of duties from any of its authorized banks for all Customs locations. Eight banks have already started collection of customs duties through e-payment. To facilitate this the electronic Pay and Account Office(e-PAO) software has also been developed which is under implementation.

X. Trade Finance

Trade Finance Division coordinates and analyses the pre-budget proposals received from Apex Industry Associations / Chambers of Commerce, Export Promotion Councils, Commodity Boards, Federation of Exporters’ Organizations etc. The Department, through the Export-Import Bank of India and in line with the trading opportunities, proactively endeavoured to enhance the competitiveness of Indian exporters while also striving to ensure that Banks’ activities and financing initiatives keep pace with the discerning requirements of industry and trade.

XI. Important Initiatives by Export Promotion Councils (EPCs)

A. Gem & Jewellery Export Promotion Council (GJEPC)

Gems and Jewellery (G&J) sector is one of the thrust areas for export. It is also one of the leading sectors in India in terms of value of export as well as employment generation. The G&J manufacturing sector consists of large number of SME units, employing skilled and semi-skilled labour, almost entirely in the unorganized sector. The Gems & Jewellery Export Council (GJEPC), in a recent study, has estimated that the Gems & Jewellery sector employed approximately 34 lakh people across all segments.

Hon’ble Minister of Commerce and Industry, Shri Anand Sharma inaugurating Bharat Diamond Bourse, Bandra-Kurla Complex at Mumbai on 17th October 2010

India has also the distinction of being the largest cutting and polishing centre in world. Of the global polished diamond market, India’s share is estimated to be 70% in terms of value, 85% in terms of volume and 92% in terms of pieces. Diamond processing units in the country are mainly located in Surat, Ahmedabad – Palanpur belt and Bhavnagar – Rajkot belt of Gujarat.

During the year 2010-11, the Gem & Jewellery Export Promotion Council (GJEPC) participated in the following events/exhibitions in India and abroad:

  • India Pavillion at Vicenzaoro Charm 2010 – 22-26 May 2010 at Vicenza, Italy
  • JCK Las Vegas 4-7 June 2010 at Sands Expo Venetian Hotel, USA
  • India Pavilion at JA Show New York 2010 - (July 25-28, 2010), USA
  • India pavilion at 46th Bangkok gems & jewellery fair (7-11 September 2010)
  • India Pavilion at Hong Kong Jewellery & Gem Fair 2010 (HJGF 2010): (14-20 September, 2010)
  • India Pavilion at Jewellery Arabia (October 26-30, 2010) Manama, Bahrain
  • India International Jewellery Show (IIJS) 2010 – India Show, at Mumbai (19-23 August, 2010)
  • IIJS Signature 2010 (19-22 February 2010) at Panjim, Goa.

Other Promotional Activities of the Council

Council’s Promotional Booths at International Exhibitions

Promotional booth at Istanbul Jewellery Show – (March 13 – 17, 2010)

Promotional booth at Korea International Jewellery & Watch fair 2010 (April 29 – May 2, 2010)

Promotional booth at the 9th New Russian Style Fair 2010 – (May 7- 11, 2010)

Road Shows

  1. London Roadshow: 13th March 2010 :
  2. IIJS 2010 International road show was held on the 10th May at the New
    Russian Style Fair Moscow on the first level of the Exhibition Center.
  3. Road show to Far East Asia:- 24th June to 3rd July, 2010.
  4. Road show at Jeddah, KSA on 16th June,2010
  5. Road show at Algiers on 19th June,2010, Algeria
  6. Road show at Casablanca on 21st June,2010, Morocco

Road Show at Beirut & Tripoli – 22 -24 July 2010

Buyer – Seller Meets in India and Abroad

  1. 2ND Indo Euro Jewellery Summit : (26th – 30th April 2010) at Grand Hyatt, Kalina, Mumbai, India
  2. 2ND Indo Euro Mini Summit: (17th-19th May, 2010) at Mumbai, India
  3. 4th Indo-China Diamond BSM: (1st – 3rd Dec 2010) at Shanghai, China

Other Promotional Measures

Mines to Market – International Diamond Conference 2010 from 12-13th October, 2010.

India International Jewellery Week (IIJW) 2010 from 15-19 August, 2010 at Grand Hyatt, Mumbai.

Promotions through Overseas Trade Magazines

B. Project Exports Promotion Council (PEPC)

Project Exports Promotion Council of India((PEPC) is an export promotion council which was set up by the Government of India in 1984 (as Overseas Construction Council of India) to promote and support the causes and concerns of the Indian project exporters to enhance project exports. Project exports include projects contracted on any of the following module:

  1. Civil construction projects;
  2. Turnkey projects including engineering, procurement and construction from concept to commissioning and would also include civil work, civil construction and all supplies specific to these turnkey projects;
  3. Process and engineering consultancy services relating to the above;
  4. Project construction items excluding steel and cement

The volume of overseas contracts secured by India’s project exporters has been consistently rising and has gone up from USD 1,350.63 million in 2005-06 to USD 4,500.15 million in 2009-10.

PEPC participates every year in overseas exhibitions to showcase India’s capabilities in the project exports sector. PEPC led a delegation of project exporters for participating in the Baltic Build 2010 held during 10th-13th September, 2010 and in Saudi Build (Riyadh) during 18th -21st October, 2010 in 2010-11.

It is expected that value of project contracts secured would reach the level of USD 9650 million by the year 2014-15.

C. Services Export Promotion Council (SEPC)

Services Export Promotion Council (SEPC) was set up by the Department of Commerce exclusively for export promotion relating to the following 14 services,:

  1. Healthcare services including services by nurses, physiotherapist and paramedical personnel;
  2. Educational Services;
  3. Entertainment services including Audio-visual services;
  4. Consultancy Services;
  5. Architectural Services and related services;
  6. Distribution Services;
  7. Accounting/Auditing and Book Keeping Services;
  8. Environmental Services;
  9. Maritime Transport Services;
  10. Advertising Services;
  11. Marketing Research and Public Opinion Polling Services/Management Services;
  12. Printing & Publishing Services
  13. Legal Services
  14. Hotel and Tourism related services

At present, services export data is compiled by RBI showing India’s under invisible receipts in the balance of payments account. As per RBI data, services exports have recorded more than fourfold increase in eight years from US$ 20.76 billion in 2002-2003 to US$ 93.79 billion in 2009-2010. If this growth rate sustains, services export can touch the level of merchandise exports in coming years.

The position of India’s services exports is given in Table 4.7.

As evident from Table 4.7, the acceleration in services export of India is mainly on account of growth of exports in high value services like software services, business services, travel and tourism related services including medical tourism, transportation services and financial services etc. There have been continuous increasing trends in all the sectors of services exports observed during the last seven years up to 2008-2009 with an exception of a dip in 2009-2010 because of global economic meltdown. Even this slip has been made up during 2010-2011, as April-Sept 2010 figures went up to 55.75 billion services exports, as against 43.76 billion during April-Sept 2009.

D. Electronics and Computer Software Export Promotion Council (ESC)

Electronics and Computer Software Export Promotion Council (ESC) is mandated to promote India’s exports of electronic hardware, telecom equipments, computer software and IT-enabled services.

Ever since its inception in 1989, ESC has successfully contributed in steering volume and direction of India’s electronics and software exports to achieve over USD 56.46 billion during 2009-10. Under the aegis of the Council, IT services exports have found markets in more than 200 countries across the world establishing the hallmark of India’s quality and competitiveness.

Some of the services of ESC are as follows:

  • Participation in global trade shows/expositions and conferences.
  • Market research/studies and publicity campaigns in overseas markets.
  • Business interface between Indian and foreign companies through Buyers – Seller Meets, and locating new business partners for Indian electronics, computer software and IT companies.
  • Online facility for Data Search.

ESC participated in following global expositions:

  • ICT EXPO, 13-16 April, 2010, Hong Kong
  • COMMUNIC ASIA, 2010, 15–18, June, 2010, Singapore
  • World BPO Forum, 28-29 July 2010, New Jersey, US
  • Costa Rica IT Alliance & Services Summit, July 7-8, 2010, Costa Rica
  • The Internet Show, 25-26 September 2010, Abu Dhabi, UAE
  • Outsource World, 13-14, October, 2010, New York, US
  • GITEX Dubai, 18-22 October, 2010, Dubai
  • ELECTRONICA 2010, 9-12, November 2010, Germany

Buyer Seller Meets

Egypt and Ethiopia, 29th November–5th December 2010

Malaysia and Indonesia, 29th November–2nd December 2010

Events to be organized/participated in

  • CeBIT 2011
  • Electronic Americas, 28th March–1st April 2011, Sao Paulo, Brazil
  • Delegation Visit to Argentina, February, 2011
  • Delegation Visit to USA, February, 2011
  • Made in India Show - Indiasoft 2011.

Indiasoft is an exclusive 2 days International IT Exhibition & Conference being held in Pune, Maharashtra during 25-26 March, 2011. Indiasoft 2011 is a pure B2B event. It is expected that 350 plus foreign buyers will be visiting INDIASOFT 2011. The past edition, Indiasoft 2010, in March 2010 at Jaipur had witnessed a presence of over 250 delegates / IT buyers from over 50 Countries.

E. Council for Leather Exports (CLE)

The Leather Industry holds a prominent place in the Indian economy. This sector is known for its consistency in high export earnings and it is among the top ten foreign exchange earners for the country. India’s leather exports touched US$ 3.40 billion in 2009-10, recording a cumulative annual growth rate of about 5.43% (5 years). The Industry provides employment to 2.5 million people, mostly from the weaker sections of the society.

Composition of India’s Leather & Leather Products Export Basket (2009-10) can be seen in the Chart 4.1.

As per officially notified DGCI& S monthly export data, the export of leather and leather products for the first six months of the current financial year 2010-11 i.e. April-September 2010 touched US$ 1864.27 million against the performance of US$ 1630.78 million in the corresponding period of last year, registering a positive growth of 14.32%. In rupee terms, the export touched Rs.85,863.73 million in April-Sept 2010 against the previous year’s performance of Rs.79,260.74 million registering a positive growth of 8.33%.

A Statement showing the Product-wise Export performance during April-September 2010 vis-à-vis April-September 2009 is given in Table 4.8.

Box: 4.1
Major Highlights
  • In Rupee terms, export of finished leather, leather footwear, leather goods and non-leather footwear have recorded positive growth. Export of footwear components, mainly shoe uppers, leather garments and saddler & harness had recorded a decline of 7.03%, 18.90% and 1.23% respectively.
  • In Dollar terms, export of footwear components shows a marginal decline of 1.89% and leather garments recorded a declining trend of 14.42%.
  • All other leather products are showing positive export growth during the first six months of 2010-11.

Destination-wise analysis

  • Export performance by destinations during April-September, 2010 is at Table 4.9.
  • The major markets for Indian leather products are Germany with a share of 13.27%, UK 12.54%, Italy 11.87%, USA 9.03%, Hong Kong 9.10%, France 6.87%, Spain 6.28%, Netherlands 4.03%, Belgium 1.93%, U.A.E.1.91%, Australia 1.22%
  • These 11 countries together accounts for nearly 78.05% of India’s total leather products export.
  • Export of leather & leather products to Germany, USA, UK, Italy, France, Hong Kong, Spain, Netherlands, Russia, New Zealand, Canada, South Africa and Japan is showing positive growth during April-September 2010
  • Export of leather & leather products to Australia, Greece, Switzerland, Portugal, Ireland, and UAE has declined.

3.0 Port-wise export performance

As per the Port-wise compilation for the month of April-September 2010, export of leather & leather products from South, West, East and Central Regions are showing positive trend. However, exports from Northern Region had shown a declining trend (Table 4.10).

India’s export of leather & leather products during the first six months of the current year 2010-11 ie. April-September 2010 touched US$ 1,864.27 million as against US$ 1,630.78 million in the corresponding period last year, recording a positive trend of 14.32%.

Footwear alone holds a major share of 44.67% in India’s total leather products export trade.

Major Markets:

The major markets for Indian leather products are Germany with a share of 14.45%, UK 13.41%, Italy 11.72%, USA 8.71%, Hong Kong 7.35%, France 7.53%, Spain 6.43%, Netherlands 4.03%, Belgium 1.92%, U.A.E.2.03% and Australia 1.58% .These 11 countries together account for nearly 79.16% of India’s total leather products export.

Export Promotion Activities

  • A total of 8 International fairs (including one fair in Brazil under Focus LAC Programme and 3 Buyer-Seller Meets including one BSM under Focus ASEAN programme were planned.
  • Participation in 3 International fairs organized in the first half of the year upto 30th September 2010. About 75 exporters participated. Business generated was about US.$. 57 million.
  • Other 5 International fairs and 3 BSMs will be organised in the second half of the year until 31st March 2011.
  • About 24 Seminars/workshops were conducted till 30th November 2010 with presentations from eminent experts/resource persons.
  • About 1070 members were benefited. About 30 such programs will be organized in remaining period till 31st March 2010.
  • Aggressive publicity programmes undertaken/being undertaken to create better awareness about capabilities of Indian leather industry in global markets, thereby further build-up the image of India.

Policy and Supportive Measures

Considering the potential offered by the leather industry for growth and employment generation, the leather sector was recognized as a “Focus Sector” in the Foreign Trade Policy (FTP) 2009-14 announced on August 23, 2009. Accordingly, several special focus initiatives were announced for the Leather Sector in the FTP 2009-14 and also in the Annual Supplement 2010-11 to FTP. The measures announced in the Annual Supplement 2010-11 are given below.

  • Duty Credit Scrip benefit under Focus Product Scheme (FPS) notified under Chapter 3 of the Foreign Trade Policy was enhanced from 2% to 4% for leather products and footwear notified in table 7 of Appendix 37 D the Handbook of Procedures (HBP) – Vol. 1.
  • Leather sector allowed re-export of unsold imported raw hides and skins and semi-finished leather from Public bonded warehouses, without payment of any export duty so as to facilitate the logistics for establishment of such warehouses and easy access to raw material for the leather sector.
  • Finished Leather entitled for Duty Credit Scrip @ 2% under Focus Product Scheme (FPS).
  • Agra was notified as a Town of Export Excellence (TOEE) for Leather Products in addition to Kanpur, Dewas and Ambur which were earlier notified as TOEE under FTP 2009-14.
  • Zero duty EPCG scheme, introduced in August 2009 for certain sectors including the Leather Sector and valid for only two years upto 31.3.2011, was extended by one more year till 31.3.2012.

F. Chemicals Export Promotion Council (CHEMEXIL)

The exports of Drugs & Dye Intermediates, Inorganic, Organic & Agro Chemicals, Cosmetics, Toiletries and Essential Oils and Castor Oil, falling under the purview of the Chemexil, registered a growth of 23.32% during the period April-Sept., 2010 over that of April-Sept, 2009. The Total exports during this period were to the tune of USD 4,070.2 million as compared to USD 3,300.4 million last year (April-Sept.). An impressive growth of 79.6% has been registered in the export of Castor oil whereas the exports of Inorganic, Organic and Agro chemicals have also registered growth of 28.6& during April-Sept. 2010 over that of April-Sept. 2009.

Chemexcil’s export performance figures for the year 2009-10 to 2010-11 are given in Table 4.11.

Panel
2009-10
(April-Sept)
2010-11
(April-Sept)
% increase/ decrease over previous year
Dyes & Dye Intermediates
1,107.4
1,216.7
9.9
Inorganic & Agro chemicals
1,516.7
1,950.0
28.6
Cosmetics,Toiletries and essential oils
475.2
542.4
14.1
Castor oil
201.1
361.1
79.6
Total
3,300.4
4,070.2
23.3

Export Promotion Activities

The Council participated in the following fairs

  • 1st FMB Africa Conference & Exhibition,Morocco during 7-9 April, 2010
  • 3rd Cosmobeaute 2010,Vietnam during 22-24, April 2010
  • Inachem 2010,Indonasia during 17-19 June, 2010
  • CHEMSPEC Europe, Berlin, Germany – 9-10 June, 2010
  • Delegation to Austria – from 14-15, June, 2010
  • Delegation to Egypt from 16-17 June, 2010.
  • International Crop-Science Bilateral Trade Meet  & Conference -  21- 22 June, 2010, Istanbul, Turkey
  • DYE+Chem Bangladesh Expo, Dhaka, Bangladesh, 28th to 31st July, 2010

G. The Plastics Export Promotion Council (PLEXCONCIL)

Products from the Indian Plastics Industry are exported to over 150 countries around the globe, with the major trading partners being the European Union, China, USA and the UAE. The plastic exports during the period April-Sept.,2010 were to the tune of US $ 199.10 million compared to US$ 1504.81 million during the same period last year.

Plexconcil jointly with EEPC INDIA organized India’s participation at Arabplast 2011, held in Dubai from January 8-11,2011. Over 100 Indian Companies, which comprised of 54 member companies of Plexconcil, participated in this exhibition. Arabplast is considered to be a major vehicle for export promotion of plastic items not only to the United Arab Emirates (which is among the top five export destinations of plastics exports from India) but also to other countries in the Middle East and African Regions.

H. Chemicals and Allied Products Export Promotion Council (CAPEXIL)

The major products following under the purview of this export promotion Council are Bulk materials and Ores, Granite, Natural stones, Auto tyres and tubes, Rubber products, Books Publications and Printing, Ceramics and Allied products, Glass and Glassware, Paints, Varnishes and Allied products, Paper, Paper Board and products etc. The export of products under this Council registered an impressive growth of 52% during the period April-Sep, 2010 over the corresponding period of April-Sept,2009 as its exports touched USD 7822 million during this period against 4888 US$ Million during the same period last year.

The major growth was in respect of Bulk Minerals and ores to the tune of 98%. Similarly there was also impressive growth in respect of Rubber products and Auto Tyres and Tubes to the extent of 34% and 33% respectively.

Export Promotion Activities

Council participated in the following fairs

  • INDEE, Colombia
  • Reverse Buyer Seller Meet (RBSM) for Ceramics, Glass and Allied Products including Refractories in Jaipur, Ahmedabad and Morbi during 11-14 November 2010 under the Market Access Initiative Scheme for 2010-11.
  • The Big 5 Show, at Dubai, UAE during 22-25 November, 2010.

I. Shellac and Forest Products Export Promotion Council (SHEFEXIL)

Shefexil has projected an export target of US$ 1350 million of Non Timber Forest Produce and their value added variants, Guar Gum and Sesame seeds during 2010-11. A growth of 35.20 per cent has already been achieved recording exports of US$ 670 million (provisional) during the current period of April-Sept.,2010 as against exports of US$ 500 million during the period April-Sept.,2009. The Council has projected a realistic export target of US$ 2380 million by 2013-14.

J. Engineering Export Promotion Council (EEPC)

India’s Engineering Exports has increased by 45% from USD 15.76 billion in April-September 2009 to USD 23 billion in April-September 2010. It is estimated that the Engineering Exports will cross USD 40 billion in the current fiscal year thereby contributing to 20% of India’s target exports of USD 200 billion for the current fiscal year. The base effect has been a major factor in the high export growth figures of engineering exports.

Indian Auto Industry

The Automobile Industry bounced back in 2010-11 and the exports registered an impressive growth. The exports of Motor Vehicles (excluding Two Wheelers and Three Wheelers) were to the tune of USD 2,301.92 million during April-September 2010 as compared to USD 1,696.93 million during the same period in the previous year, registering a growth of 35.65%. The exports of automobile components spare parts etc. touched USD 1,301.01 million during April-September 2010 as against USD 522.94 million during April-September 2009 and similarly the exports of Two and Three Wheelers registered growth to the tune of USD 513.27 million in April-September 2010 over that of USD 251.38 in April-September 2009. Thus export growth of 148.78% and 104.18% was registered during April-September 2010 in respect of Automobile Components, Spare parts, etc. and Two Wheelers and Three Wheelers respectively.

Important Events Organised By Eepc India

INDEE Colombia 2010

EEPC INDIA organized its 23rd Engineering Exhibition (INDEE) between 4-8 October 2010 at Corferias Bogota, Centro Internacional de Negocios y Exposiciones de Bogota, Carrera 27 No 24-27 Bogota, Colombia. This exhibition coincided with Feria Internacional de Bogota, organized by Corferias Bogota – Internacional Business and Exhibition Center. This exhibition was a tailor made product to enhance India’s exports to Colombia and for penetrating into the entire Latin American region. 151 Indian companies participated in INDEE Colombia.

Indee Cairo 2010

The 24th Indian Engineering Exhibition – INDEE – was organized in Cairo, Egypt, between 25th to 28th November 2010 at the Cairo International Convention and Exhibition Centre. The exhibition coincided with MACTECH 2010, the premier International Exhibition for Machine Tools, Industrial Tools, Welding & Cutting Equipment. Around 80 Indian companies participated in INDEE Cairo.

K. Indian Oil Seeds & Produce Export Promotion Council (IOPEPC)

Indian Oilseed and Produce Exporters Association EPC has been renamed as Indian Oilseeds and Produce Export Promotion Council vide Public Notice No. 76/2009-2014 dated 29th June, 2010. IOPEPC has been engaged in the development and promotion of exports of oilseeds, oils and cakes, it has been catering to the needs of exporters for over half a decade. Besides focusing on exports, the Council also works towards strengthening domestic supply chain by encouraging farmers, shellers, processors, surveyors and exporters to enhance the quality of oilseeds in India. IOPEPC has also been assigned with responsibility of issuance of Certificate of Exports and recognition of units/warehouses for exports of Peanut and Peanut Products(PPP). The Council also has an excellent arbitration mechanism which is effectively utilized by Indian exporters and Global buyers to resolve their trade related issues and disputes. Besides organizing participation in International trade fairs, the Council also organizes Regional Trade meets across India with the objective of spreading quality awareness.

The Indian edible oil market is the world's fourth-largest after those of USA, China and Brazil. The demand for edible oil in India is expected to rise on account of growing population, increasing rate of consumption and increasing per capita income.

India, being the world's largest importer (ahead of the EU and China), is considered to be a leading player in global market for edible oils. It is also world's third-largest consumer (after China and the EU). India’s share in global vegetable oil import is about 13.65%, whereas in terms of edible oil consumption, India’s share is 10.28%. The total demand for edible oils in India is estimated to be 15.6 million tons, which is primarily met from import. During 2009-10, domestic production of edible oils was approximately 6.5 million tons.

The export of vegetable oils under the purview of IOPEPC was about Rs.19.67 lakhs in 2008-09 which went up to Rs.20.52 lakhs in the year 2009-10. Quantity-wise export in the year 2008-09 was 3.36 MT which subsequently increased to 3.76 MT in the year 2009-10.

L. Cashew Export Promotion Council (CEPC)

Cashew was introduced in India in the 16th century to prevent soil erosion. Later it spread as a popular crop to the South Western and South Eastern parts of India and its usufruct, the cashewnut became a popular delicacy.

Cashew cultivation in India now covers a total area of over 0.9 million hectares of land in eight states, producing over 6 lakh M.T. of raw cashewnuts annually. India is the largest producer and processor of cashews in the world and accounts for about 40% of the world exports of cashew kernels. The industry provides employment to about 10 lakhs workers, mainly women from the weaker sections of the society. Thus the development of export of cashew has both economic and commercial significance.

With intensive promotional measures CEPC will be able to considerably improve their exports. Indian cashews is exported to more than 60 countries. The U.S.A., U.A.E., Netherlands, Japan and U.K. are the principal markets.

The Cashew Export Promotion Council of India was established by the Government of India on 17th August 1955 with the active co-operation of the cashew industry. The Council has, since its inception, been providing the institutional framework for improving international trade in cashew and allied products.

The primary functions of the Council include export promotion by sponsoring trade delegations, market studies, brand promotion programmes, Buyer Seller Meets etc, participating in trade fairs abroad, providing market information and rendering all other assistance to our exporters in their efforts to increase our exports. The Council also undertakes relentless campaign in association with the Directorate of Cashewnut & Cocoa Development for production development, projects for development of new products, packaging, etc., providing assistance to the exporters for process upgradation, modernization, upgradation of quality standards, etc.

CEPC Laboratory & Technical Division

The Council has set up a Laboratory and Technical Division of international standards with NABL accreditation at Kollam. The laboratory is equipped with state of the art technology to undertake the analysis as per the requirements of the importing countries. It provides analytical services to the Indian cashew industry and monitors the quality of cashews produced and processed in the country. The services of this Laboratory are available not only to the cashew industry in India, but also to the entire food processing industry in India and abroad. The laboratory also extends consultancy services to exporters for technology upgradation, modernization of factories, adoption of HACCP/ISO 9000 quality systems in cashew factories, etc.

Exports

Exports of cashew kernels and cashewnut shell liquid from India during the last three years are indicated in Table 4.12.

As per the data received from various Custom Houses, the total export of cashew kernels from India during 2009-10 was 1,08,120 MT valued at Rs. 2905.82 Crores (US$ 613 Mln). It showed a decrease of 1.28% in quantity, 2.76% in value in rupee terms and 5.73% in US$ terms in comparison with the export of 1,09,522 MT cashew kernels valued at Rs. 2988.40 Crores (US$ 650 Million) during 2008-09. As per estimates, the export of cashew kernels up to April – November, 2010 is 69,000 M.T valued at Rs.1,900 Crores. The anticipated export of cashew kernels during 2010-11 would be 1,10,000 MT valued at Rs. 2900 Crores. The major markets for Indian cashew kernels are USA, UAE, Netherlands, Japan, U.K., Saudi Arabia, etc. The average unit price realized during the year 2009-10 was Rs. 268.76 per kg compared to Rs. 272.86 per kg. during 2008-2009, recording a decrease of 1.5%.

The export of Cashewnut Shell Liquid / Cardanol from India during 2009-10 was 9,748 MT valued at Rs. 24.12 Crores (US$ 5.08 Million) against export of 9,099 MT valued at Rs. 26.06 crores (US$ 5.67 Million) during 2008-09.

Import

Only half of the requirement of our industry is met from the raw cashewnuts produced domestically. For the other half, the industry has to depend on imports from other producing countries, mostly African Nations and Indonesia.

The raw cashewnuts imported into India during 2009-10 was 7,52,854 MT valued at Rs. 3,037.35 crores, as compared to 6,05,850 MT valued at Rs 2,632.40 crores during 2008-09. The unit price for raw cashewnut was Rs. 40.34 / kg during 2009-10.

Export Incentives

The DEPB rate for export of cashew kernels continued at 1.5%. Drawback rate remained at 1% of FOB value.

Vishesh Krishi and Gram Udyog Yojana(VKGUY) assistance for Cashew Kernels, CNSL and Cardanol continued at the rate of 5%.

Conventions / Exhibitions / Trade Delegations

So far, the Council has participated in the following exhibitions/trade fairs during the year 2010-11:-

1) Alimentaria, Mexico
2) Made in India Show, Dubai
3) Africa Big 7, Johannesburg
4 Fine Food, Melbourne, Sydney
5) SIAL Food Fair, Paris, France
6) Western China International Fair, China

The Council also proposes to participate in Gulfood, Dubai and Foodex, Japan during February & March 2011 respectively.

The Council proposes to sponsor a trade delegation to Focus markets during this year. It had sponsored two delegations during the last year, one to Indonesia, Vietnam and Cambodia and the other to Kazakhstan and Russia.

The trade enquiries received at the fairs and delegations were circulated among the members for information and follow-up. Apart from this, the Council participated in various Seminars/Workshops related to the industry.

MDA Assistance

a) MDA Grant to Council for Core Activities

The Council gets grant-in-aid for undertaking export promotion activities from the Department of Commerce, Govt. of India.

b) Assistance to Exporters

The Council receives grant-in-aid for reimbursement to individual exporters for their participation in fairs/trade delegations, etc. A sum of Rs. 20.56 Lakhs has been reimbursed to 35 exporters towards grant-in-aid for participation in international fairs, trade delegations, etc. during 2009-2010. This year also the Council has been sanctioned an amount of Rs. 12.50 Lakhs for disbursement to the exporters for participation in fairs/delegations.

MAI Scheme

The Council has been approved Rs. 44 Lakhs as grant under MAI for organizing KAJU INDIA 2011 Buyer Seller Meet at Kollam during February 2011. The purpose of this event is to have one-to-one interaction between importers and exporters. It is expected that, the event of this kind will help boost the image of Indian cashew apart from attracting potential new buyers and renewing the existing buying contracts. The Indian exporters will have an opportunity to exhibit their products.

Five Year Plan Schemes

The Council is implementing the XI Five Year Plan Scheme “Modernisation & Diversification”, extending financial assistance to the member exporters for upgrading and improving their processing and manufacturing units. During the year 2009-10, the Council disbursed Rs. 5.00 crores to 38 exporters under this Scheme.

ASIDE Scheme

With the assistance of grant under the ASIDE Scheme to the tune of Rs. 5.26 Crores, the Council constructed its own building ‘Cashew Bhavan’ at Kollam for its Laboratory and R&D Centre. It has also received Rs. 85.05 Lakhs from ASIDE during the year 2010-11 for its finishing work.

M. Telecom Equipment & Services Export Promotion Council (TEPC)

TEPC caters to the telecom ecosystem including telecom hardware manufacturers, telecom service providers, telecom software vendors and consultants, and aims at making India a globally competitive, telecom manufacturing and services hub for driving telecom exports.
During the year 2010-11, TEPC organized/participated in the following events/exhibitions in India as well as abroad:-

In India

  • Organized Buyer Seller Meet on 8.12.2010 at New Delhi
  • Participated in India Telecom 2010 from 9th –11th December, 2010 at New Delhi

Abroad

  • Participated in West Africa International Telecommunications Exhibition & Conference 2010 during 1st - 3rd June, 2010 in Nigeria
  • Participated in Communic Asia 2010 during 15th-18th June 2010 in Singapore
  • Participated in GITEX during 18th -21st October, 2010 in Dubai
  • Participated in Futurecom, during 25th -28th October, 2010 in Sao Palo
  • TEPC will participate in Mobile World Congress 2011, Barcelona, during 13th–17th February, 2011 and CeBIT, Hannover during 1st -5th March, 2011.

Telecom exports have gone up from Rs 402 crore in 2002-03 to Rs.13,500 crore in 2009-10 and are estimated at Rs.15,000 crore in 2010-11. The production of telecom equipment has increased from Rs.14,400 crore in 2002-03 to Rs.51,000 crore in 2009-10 and is estimated at Rs.53,500 crore in 2010-11.

TEPC envisages meeting the following targets by 2014:

  • Exports growth at 25% CAGR reaching over USD10 Billion over the next 5 years.
  • Domestic telecom products growth at 18% CAGR over next 5 years.
  • Employment generation (direct and indirect) of 15 million.
  • At least 70% of Indian domestic telecom needs to be met by products manufactured in India itself.
  • At least a few IPR- driven Indian product companies should succeed globally and become billion dollar companies.

 

 

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