 |
Dear Friends,
Compliments of the Season and Happy New Year 2013 !
The year 2012 witnessed the world economy at its most decisive phase. Every country will have to put in lot of efforts across various sectors and fields to avoid another recession. We have to first analyse the negative effects of the economy and take corrective actions so that the same mistakes are not repeated.
Europe & USA are one of the major trading partners for India and any slump in their economy has always adversely affected India. However, I am happy to inform you that in spite of difficult times in developed economy, the developing economies have shown resilience to economic slowdown and our exports to these countries have increased by almost 25% compared to last year, to name a few Brazil, Mexico, South Africa, Nigeria, Indonesia and Vietnam.
|
|
International trade in chemical products has witnessed a continuous rise with global exports of chemicals recording an average annual increase of 6.2% during 2006-2010 to amount to US$545 billion in 2010 as compared to US$451billion in 2006. USA was the largest exporter of chemicals with exports aggregating US$ 63.9 billion, followed by China (US$ 49.3 billion), Germany (US$ 48.2 billion), Belgium (US$ 36.6 billion)_ and Japan (US$ 31.6 billion). However, in terms of dynamism in exports, it was led by the emerging market of Asia Pacific, Middle East and Africa. While the average annual increase in exports from Asia-Pacific region was 11.9% during the 2006-2010 period, it was as high as 21.9% each in the case of Middle East and Africa. Consequently, the shares of these regions in world exports of chemicals registered a consistent increase. |
|
|
|
As you all know, the Planning Commission, Government of India has targeted Indian Chemical industry to be 2000 billion US$ by 2020 from 85 billion US$ presently. However, the immediate area of concern is because of global downturn, many countries having low indigenous demand will strive hard for exports. Thus, India is and will experience cheap surge in imports making our own products uncompetitive in the local as well as international markets. Added to this, credit availability will be a challenge. I am afraid, the Free Trade Agreements signed so far have really not resulted in any Advantage India whereas our partner countries have benefited mostly by entry into huge Indian market. Therefore, I feel the following initiatives would be required to combat this eventuality: |
|
|
 Protect Indian Chemical Industry by imposing safeguard duties wherever cheap imports are coming in to Indian market. |
Import duty on feed stock must be 0% and inverted duty structure wherever applicable such as Oleo chemicals, Naphthalene
should be corrected. |
Export Oriented Units should be allowed to sell their goods in domestic tariff area on par with import duty levied on goods
coming from countries where FTAs have been signed. |
|
Provide more sops to the Indian exporters. |
|
|
|
I also feel that our R & D need upgradation at affordable soft loans with longer moratorium. |
|
There should be no import duty on capital goods imported for R&D activities. |
|
|
|
The other long term actions would be to encourage investment in green chemistry and Carbon Emission Reduction Credit may be exempted from Income Tax. |
|
|
|
For your kind information, we have time and again taken up with the Government to give monetary incentives to all registrants under REACH irrespective of their SSI, SME and LSM status. The matter is still pending with Ministry of Commerce. |
|
|
|
In toeing the above lines CHEMEXCIL had a very successful Indian Chemical Exhibition in South Africa followed by Trade Delegation to Nigeria and Ghana. On the home ground, we had organised Reverse Buyer-Seller Meet coinciding with Indiachem 2012 which was inaugurated by Hon?ble President of India Shri Pranab Kumar Mukherjee. During this Buyer-Seller Meet, we had invited 38 foreign delegates to meet 134 Indian counterparts. |
|
|
|
The details of these events have been given in the following pages. For the remaking year, we have the following prominent events: |
|
|
|
Indian Chemical Exhibition in Vietnam from 23 ? 24th January 2013 where already 50 Indian participants have registered. |
|
|
|
We also would be organising Reverse Buyer-Seller Meet titled ?Rejuvenation Via India - Sourcing From India? + Vendor Development Programme,at Panjim, Goa from 7th to 8th February, 2013. |
|
|
|
I call upon my fellow exporters to take advantage of these events wherein you will not only get international exposure but also strengthen your existing ties and new contacts. |
|
|
|
Once again I wish you a very Happy and Prosperous 2013. |
|
|
|
With Warm regards, |
|
|
(SATISH W. WAGH)
Chairman : Chemexcil
Chairman's office:
M/s. Supriya Lifescience Ltd. (Formerly Known as Supriya Chemical)
207/208, Udyog Bhavan,
Sonawala Road,
GoregMumbai : 400 063.
|
