Hon. Union Commerce Minister Shri Suresh Prabhu urges Export Promotion Councils such as CHEMEXCIL to act like think tanks to help exporters to develop macro strategy for increasing exports!
CHEMEXCIL - Basic Chemicals, Cosmetics & Dyes Export Promotion Council set up by the Ministry of Commerce & Industry Government of India - held its 46th Annual Export Awards and Certificate of Merit for the year 2016-17 at a glittering function in Mumbai. Shri Suresh Prabhu, Union Minister for Commerce & Industry and Civil Aviation, Government of India and Shri Shyamal Misra, Jt. Secretary, Ministry of Commerce & Industry, graced the Annual Award function, which was attended by captains of the chemical industry and business leaders. Shri Satish Wagh (Chairman, CHEMEXCIL), Shri Ajay Kadakia (Vice Chairman, CHEMEXCIL) and Shri SG Mokashi (Additional Vice Chairman, CHEMEXCIL) were the hosts for the grand event.
CHEMEXCIL – Basic Chemicals, Cosmetics & Dyes Export Promotion Council set up by the Ministry of Commerce & Industry Government of India – held its 46th Annual Export Awards and Certificate of Merit for the year 2016-17 at a glittering function in Mumbai. Shri Suresh Prabhu, Union Minister for Commerce & Industry and Civil Aviation, Government of India and Shri Shyamal Misra, Jt. Secretary, Ministry of Commerce & Industry, graced the Annual Award function, which was attended by captains of the chemical industry and business leaders. Shri Satish Wagh (Chairman, CHEMEXCIL), Shri Ajay Kadakia (Vice Chairman, CHEMEXCIL) and Shri SG Mokashi (Additional Vice Chairman, CHEMEXCIL) were the hosts for the grand event.
Applauding the valuable contribution of Indian chemical exporters, Hon. Union Commerce & Industry Minister Shri Suresh Prabhu said, “The country’s chemical sector has huge growth potential and it needs to create a capacity to meet exports demand. This is possible because of the large pool of entrepreneurs who make sustained efforts to promote the chemical sector exports in coming days. I understand, the chemical sector is expected to grow more than double and touch USD 300 billion by 2025 from USD 147 billion now. On part of Government initiative, let me assure you that the Government would provide an enabling environment to the industry to increase the country’s exports.”
Shri Prabhu added, “During CHEMEXCIL’s Export Awards, it was heartening to see the first generation of entrepreneurs coming forward to take the business to the next level. Many countries across the world have started enforcing stringent norms wrt chemicals and this presents India with a wonderful opportunity to enhance its market access and gain market share. Export Promotion Councils such as CHEMEXCILs are think tanks that have to play a key role in developing macro strategy to help exporters increase global exports. With competition increasing, we have to formulate a clear roadmap and Union Ministry is willing to act as a facilitator. As Guardian Minister for the chemicals industries, I am happy to help resolve GST related issues. I urge the industry constituents to appeal to the State Chief Ministers as States have greater representation in GST Council. We are soon starting a portal with the help of multiple relevant agencies where all issues related to foreign trade transactions will be addressed in order to improve efficiencies.”
Shri Shyamal Misra, Jt. Secretary, Union Ministry of Commerce & Industry, said, “The chemicals sector is vital for Indian economy. The Indian chemicals industry sized at around USD 147 billion is ranked amongst the Top 7 in the world and Top 3 in Asia – however we have to make efforts to move up to amongst the Top 2 or 3 ranks in the world. Government has unveiled several new schemes and is committed to help exporters increase exports. There is a lot of potential in agro chemicals and speciality chemicals and we have to enhance our global market share therein.”
Top export performers includes Reliance Industries, Godrej Industries, Aarti Industries, UPL, Indo-Amines, Galaxy Surfactants, Jubiliant LifeSciences, Girnar & Oriflame to name a few. CHEMEXCIL felicitated two Life Time Achievement Award Winners viz. Mr. Ashwin Champraj Shroff from Excel Industries Ltd. and Mr. Jayant Patel from Meghmani Organics Ltd. CHEMEXCIL presented 11 Trishul Awards, 12 Gold Awards, 11 First & 9 Second Awards, 19 Certificates of Merit and 11 Award of Excellency.
Mr. Satish Wagh, Chairman, CHEMEXCIL, said, “The selection of Awards has been done taking into consideration the consistency and growth achieved in exports during the last three years and the export figure of the year 2016-17 and the total awards conferred on the exporters was 73 and 2 Life Time Achievement Awards. The supportive policy initiatives of the Government encouraged our star exporters to increase their share in the world market. India has the talent, technology and infrastructure already. In 2016-17, Exports of CHEMEXCIL was USD 12.15 billion which shows increase of 4% in value terms over previous year exports of USD 11.68 billion”.
In the midst of present difficult global market, the value of Indian chemical exports have touched a growth of 18 per cent at USD 12.78 billion in the period from April 2017 to February 2018 over the corresponding previous year which augers well for future and a sign of recovery. The value of Global Chemical Industry is estimated at US$ 4.3 trillion. Whereas, the output of Indian Chemical Industry is US$ 147 billion in 2015 and is expected to grow at around 9 % per annum over next 5 years. In value terms, Indian Chemical industry is 3rd in Asia & 6th worldwide.
ABOUT CHEMICAL SECTOR IN INDIA
India is the third largest producer of agro chemicals globally. Specialty chemicals market has been growing at 14% over the last five years due to domestic consumption and the market size is expected to touch USD 70 billion by 2020. India produces around 16% of the world’s dyestuff and dye intermediates, particularly reactive acid and direct dyes. India exports around 50% of its agro-chemicals production.
The chemical industry is one of the earliest domestic industries in India, contributing considerably to both the industrial as well as economic growth of the country. The industry presently produces around 80,000 commercial products, which range from toiletries and cosmetics, to plastics and pesticides. It is a capital intensive industry which employs around 2 Million People in India. The industry is primarily located in the western and southern regions of India, with approximately half of the industry concentrated in Gujarat. Other significant areas of production exist in Maharashtra, Rajasthan, Uttar Pradesh, Punjab, Tamil Nadu, Madhya Pradesh, Kerala, and Andhra Pradesh.
The Make in India initiative is expected to foster growth in Indian chemical industry by enabling duty rationalization for feedstock, improving infrastructure and R&D & skill development along with ease of regulation for setting up “Reverse SEZs” and tax incentives for R&D investments. To improve trade a “Trust based Self Ratification Scheme” has been introduced in Mid-Term review of FTP 2015-20 to allow duty free inputs for export production under duty exemption scheme with a self-declaration. Under this scheme, instead of getting a ratification of the Norms Committee for inputs to be used in the manufacture of export products, exporters will self-certify the requirement of duty free raw materials/ inputs and take an authorization from DGFT.
As a part of trade facilitation, CBIC has come out with guidelines for revised AEO scheme to provide further benefits to the entities who have demonstrated strong internal control system and willingness to comply with the laws administered by the Central Board of Excise and Customs. Further, e-SANCHIT for online submission for documents under B/E will reduce transaction costs. This is was in continuation to SWIFT (Single Window Interface for Facilitating Trade) which has been launched which enables importers or exporters to file a common integrated declaration, instead of 9 forms across 6 agencies. All these steps are in line with ease of doing business measures and save transaction costs.