Vietnam Trade Expo
 |
 |
| Left: Mr. Kuldeep Singh, Consul, Consulate General of India, Vietnam, (left) with Mr. R. Asokan, Jt. Director, FIEO(SR). | Right: Mr. R Asokan attending the visitors at FIEO Pavilion. |
FIEO participated in Vietnam Trade Expo held at Ho Chi Minh City in Vietnam from 12 to 16 December. Vietnam Advertising and Fair Exhibition Company organized the fair with active support from Department of Import & Export - MOT, HCMC Service of Trade, Vietnam Trade Promotion Agency-Vietrade, HCMC Department of Science & Technology, and Association of Foreign Invested Enterprises-VAFIE.
More than 250 importers visited Federation’s booth at the exhibition. They evinced interest in various Indian products, especially engineering goods, chemicals, dyestuffs, machinery etc. Mr. R. Asokan, Jt. Director, FIEO, Southern Region interacted with these importers on behalf of the Federation.
|
No direct correlation between exchange rate and export growth: FIEO Reacting to Finance Minister’s statement, President FIEO Mr. Ganesh Kumar Gupta said in a press statement issued on 9th December that there was no direct correlation between exchange rate and export growth. "We have experienced in many years in the past that the rupee appreciated yet exports showed growth and vice versa. However, never did in the last few decades the rupee appreciate by 15% in 12 month time and thus the present situation is extraordinary and unique." He said. FIEO Chief agreed with the FM that in the long term exporters had to adjust themselves with appreciating rupee, but he reiterated his stand that exporters were demanding fiscal benefit to tide over the present problem and such benefits might not be perpetual in nature. Meanwhile, he added that the Government should provide adequate relief which should percolate to the exporters rather remaining on paper. President FIEO said that exporters were still struggling to get increased drawback for shipments effected from 1st April and so was the case with the arrears on account of subvention of interest rate. Refund of service tax on select services will add to transaction cost looking at enormous paperwork involved. FIEO Chief added that exporters were committed to exports and were thus cutting their cost, increasing their productivity, diversifying products and markets and moving up the value chain. Yet, he said, such thing will not happen overnight and thus short term relief is need of the hour but any such relief should be comprehensive and be declared in a single package effective for a year. He also requested the Government to separately notify relief which was legitimately due and the relief which was in the nature of sops to clear public perception. |
|
Drawback increase too little and too late: FIEO Reacting to the announcement in the drawback rates on textiles products, Mr. Ganesh Kumar Gupta, President, FIEO said in a press statement issued on 14th December that the enhancement was not enough to offset the losses incurred by the exporters and retain global competitiveness of India’s textiles sector. Most of the increase for the garment sector is in the range of 0.25% to 1% whereas for carpets is in the range of 0.8% to 2%. President, FIEO said the increase is too little and too late. The industry has demanded an increase of 4% to 5% in the drawback rates to address the current problem. He requested the Ministry of Finance to further enhance the drawback rates by 3% for textiles sector and between 4% and 5% for other sectors, particularly those using indigenous inputs. |
|
FIEO grieves at the loss of two young officials
organized by the Centre for Promotion of Imports from Development Countries (CBI), The Netherlands during Feb-March 2007. She also represented FIEO in many overseas programmes. During her tenure with FIEO, she handled a number of export promotion projects and she was known for having in-depth knowledge about MDA Scheme, SME Scheme and WTO related matters. Mrs. Asha Kumari, a Graduate from Delhi University and having good proficiency in stenography joined FIEO on 20th May 1996 as Stenographer. On 6th August 2001, she was promoted to become the Executive Assistant. She was brilliant, efficient, sincere and hard working. She was responsible for planning and arranging the content of FIEO News which owes a lot to her creative ideas and inputs. To mark respects to the departed souls, a condolence meeting was organized by the Federation on 24th December. The meeting was Chaired by the FIEO President, Mr. Ganesh Kumar Gupta and co-chaired by Mr. Ajay Sahai, Director General, FIEO. Expressing utmost shock at the demise of the two officials, FIEO President said: "The loss to the Organisation as well as to the families of the deceased is irreparable. May God give peace to the departed souls and provide strength to the Federation and the bereaved families to bear this pain." FIEO Director General turned emotional when he said: "The sudden demise of our two young officials has created void and vacuum in the Organiastion which is hard to fill. None of us had ever visualized that the destiny can be so cruel to us.". |
|
Exporters not getting dollar loans: FIEO Chief In a press statement issued on 3rd December, Mr. Ganesh Kumar Gupta, President, FIEO says that while an additional subvention (BPLR–6.5%) of 2% was provided by RBI following the announcement of Ministry of Finance on 29/11/2007 for rupee export credit with a cap of 7%, Banks are not willing to give dollar loans to export sector which are relatively cheaper at LIBOR+1%. A three-month LIBOR as on 2nd December at 4.89% and a mark-up of 1% (as per RBI guidelines) makes dollar loans cheaper for export sector. Mr. Gupta adds that the effective cost of credit in rupees was higher in spite of the additional subvention of 2% announced recently due to factors such as levy of penal interest by Banks due to delay in payments beyond due date, service charges like L/ C advising costs, negotiation charges, renewal of limits etc. besides, procedural issues. For example, says he, at present the negotiable set of shipping documents are routed among shipping agent, exporter, exporter’s bank, negotiating bank and buyer’s bank. Often goods reach before the original documents reach buyer’s bank, especially when the exporter is situated in rural areas or semi-urban areas of our country. In such cases, goods start incurring demurrage and the buyer suffers due to non-availability of goods. Therefore, it is suggested that the shipping agent sends the original (negotiable) shipping document to the buyer’s bank immediately upon shipment of the goods and a confirmation in writing of this compliance should form a part of the terms of L/C for negotiation purpose. |
