Our export to China has been growing at a high pace ever since the two neighbours decided greater economic engagement keeping political disputes at the backburner. Last fiscal our export to China was around US$ 10,829 million recording a growth of 31% over the year 2006-07. In order to push our export further, FIEO has decided to set up India Trade Centre in China.

Among Chinese cities, Guangzhou is o­ne of the largest manufacturing hubs for various products. A large number of international buyers from around the world visit this city frequently. Canton Fair, which is the largest trade fair in China, is also held in this city twice every year. For these reasons and more, this city offers an ideal choice for setting up India Trade Centre.

In order to identify a suitable location for ITC in this city, a high-level team of FIEO officials comprising of Northern Region Chairman Dr. R. K. Dhawan and Secretary General Mr. G. P. Upadhyaya visited Guangzhou from 22 to 24 October. They called o­n Consulate General of India in Guangzhou Mr. Gautam Bambawale who lauded the idea of setting up ITC in Guangzhou and assured all possible support. Later, the Consul & Head of Chancery of Guangzhou, Mr. M. Kaushik took the two officials to the three locations shortlisted for ITC. Ms Jennie Wang, Deputy Director & Ms Ann from China Council for Promotion of International Trade (CCPIT), Guangzhou Sub-Council, Guangzhou accompanied them in the visit.

FIEO officials visited the office of Mr. Zeng Kai Zhang, Acting President, China Council for Promotion of International Trade (CCPIT), Guangzhou Sub-Council, World Trade Centre Complex, Guangzhou and held extensive discussions o­n issues such as registration of company, running the management of ITC etc.

Dr. R K Dhawan, Chairman, FIEO- NR (2nd from left) and Mr. G P Upadhyaya, Secretary General FIEO (extreme left) are discussing with Mr. Guatam Bambawale, Consulate General of India in Guangzhou, China (extreme right).

From left. Dr. R K Dhawan, Chairman, FIEO(NR), Mr. G P Upadhyaya, Secretary General, FIEO had a meeting with Mr. Zeng Kai Zhang, Acting President. o­n Mr. Zhang’s right is Ms Jennie Wang, Deputy Director and o­n his left is Ms. Ann from China Council for the Promotion of International Trade (CCPIT), Guangzhou Sub-Council, Guangzhou.

Weakening rupee alone will not help exports: FIEO

Commenting o­n media reports that exports recorded negative growth for the month of October, FIEO President Mr. Ganesh Kumar Gupta said industry and government will have to join hands to fetch the share of other countries to maintain export growth.

Mr. Gupta informed that exporters were still selling dollars in forward market despite weakening rupee and were importing at current exchange rates. He suggested that government should intervene to increase liquidity, reduce rate of interest for exports and allocate more fund under MDA scheme to support small exporters saying the depreciation of currency alone will not help.

FIEO President added that coming months might become more challenging with recession spreading to Europe as well. Traditional sectors of export with heavy dependence o­n US and Europe are likely bear the brunt, he said.

Advantage Guangzhou

FIEO signs MoU with MCX-SX to educate exporters o­n currency & commodity markets

FIEO and MCX–SX Ltd. signed a Memorandum of Understanding
(MoU) to conduct seminars, training programmes, certification programmes and simulation exercises o­n currency and commodity markets across the country. Mr. Ajay Sahai Director General, FIEO and Mr. Joseph Massey, Director, MCX–SX Ltd. inked the MoU o­n behalf of their respective organizations.

According to Mr. Sahai, such programmes are essential for exporters in the context of current volatility in currency and commodity markets. The programmes would focus small and medium exporters.

Geographic/Infrastructure Advantage

• Guangzhou, alternately known as Canton, is the capital and a sub-provincial city of Guangdong Province in the southern part of the People’s Republic of China.

• Is a major international trading port city o­n the Pearl River, navigable to the South China Sea

• Is about 120 km northwest of Hong Kong – distance which can be travelled by bus/train in two hours time. Ferry service is also available for travel.

• Is the most populous city in the province and the third most populous area in mainland China. Estimated population at the end of 2006 was approximately 97,54,600.

Mr. Ajay Sahai, Director General, FIEO(left) and Mr. Joseph Massey, Director, MCX–SX Ltd., singing the MOU.