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July - September 2018 | VOL. 5 ISSUE 1 ONTHE INTERNATIONAL TRADE RESEARCH JOURNALTRADE OF MVIRDC WTC MUMBAI For private circulation H. E. Mr. M. Shahidul Islam Secretary General BIMSTEC Secretariat Mr. Christiaan Huijg Mr. James A. Schellinger Managing Director Secretary of Commerce World Trade Center Amsterdam State of Indiana Indiana Gears Up to Accelerate Partnership with India TM Bharat Ratna Sir M. Visvesvaraya (15 September, 1860 - 14 April, 1962) M. Visvesvaraya Industrial Research and Development Centre MVIRDC World Trade Centre Mumbai is M. Visvesvaraya Industrial Research and the realisation of the vision of Sir M. Development Centre (MVIRDC) is a non- Visvesvaraya. MVIRDC is the promoter profit company registered and licensed of World Trade Centre Mumbai. MVIRDC under Section 25 of the Companies Act, WTC programmes are conducted to 1956 (currently Section 8 of the Companies guide MSMEs with reliable information Act, 2013). MVIRDC became a member of for business planning. Various research- the World Trade Centers Association, New based seminars, workshops and York, in 1971 and established the World training programmes are conducted to Trade Centre Mumbai. sensitise MSME entrepreneurs on various aspects of trade and business M V I R D C , h a v i n g s p e a r h e a d e d t h e and sharpen their skills. Thus, the movement of World Trade Centres in India objective of MVIRDC research is to with the establishment of WTCs at enhance MSME competitiveness and Bhubaneswar, Goa and Jaipur, is assisting promote their integration into global MSMEs in these regions through Trade markets. Research and Knowledge Programmes. From the Editor’s Desk CREDITS Dear Readers, Kamal M. Morarka I am pleased to place before you the Chairman July-September 2018 issue of On Trade, which carries insightful articles, Vijay G. Kalantri Captain Somesh C. Batra interviews and a snapshot of trade Sharad P. Upasani promotion programmes held during Vice Chairmen the quarter. The Cover Story in this issue brings to you perspectives from Y. R. Warerkar experts on BIMSTEC cooperation and Director General & the way forward. Head of Editorial Board EDITORIAL BOARD The regional cooperation initiative of BIMSTEC underlines the collaborative efforts for shared prosperity of more than 1.65 billion people across the Rupa Naik Senior Director seven nations of India, Bangladesh, Bhutan, Nepal, Sri Lanka, Myanmar and Thailand. Tripti Chakravorty Assistant Director-Trade Research Even though these countries represent 22% of the world population, their contributions to world GDP and world trade are hardly 4.0% and 3.7% Raja Narayanan Iyer Assistant Manager-Research respectively. By working together on various economic spheres, these countries can harness the unexplored trade and investment opportunities Nilesh Gosai and thereby enhance their economic growth potential. Creative Designer BIMSTEC is home to 30% of the world’s undernourished population. Therefore, this initiative has the mandate of finding collective solutions to WTC Bhubaneswar Official lift a large population out of poverty and promote their access to education Nimeshika Natarajan and healthcare. Thus, this cooperation also offers ample scope for collabo- Assistant Director-Trade Research ration in Sustainable Development Goals (SDGs). WTC Goa Official As the BIMSTEC grouping enters its third decade of existence, MVIRDC World Trade Centre Mumbai conducted a research study to examine the Cyril Desouza major achievements so far and to propose key actionable policy measures Assistant Director-Trade Promotion to bolster this cooperation. H. E. Mr. M. Shahidul Islam, Secretary General, BIMSTEC Secretariat released the research report. The Report carries a WTC Jaipur Official meticulous analysis of trade and investment potential, joint infrastructure development and cooperation in poverty eradication and climate change Navneet Agarwal Assistant Director-Trade Promotion mitigation among BIMSTEC countries. Printer Insightful articles and interviews on trade and investment opportunities in Vishnu Sawant Enterprise Amsterdam and the American State of Indiana are featured in this issue. 66/68, Ground Flr., Bhakhariya Niwas, Russia is an unexplored market for India’s micro, small and medium Meena Mehta Marg, Fort, Mumbai - 400 001 enterprises (MSMEs). An informative article on opportunities in Russia and Editorial Office the strategies to enter the Russian market is also covered in this issue. We M. Visvesvaraya Industrial Research and Development also bring you an overview of Sangli region, which is famously known as the Centre Turmeric capital of India. (Member: World Trade Centers Association Inc.) Centre 1, 31st floor, World Trade Centre Cuffe Parade, Mumbai 400 005 (India) We hope you find the articles and interviews in this edition valuable. We Tel : 66387272 Fax: 91-22-22188385 look forward to your continued support in our endeavour to promote and Email: [email protected] facilitate trade in the domestic and international markets. Web : www.wtcmumbai.org Disclaimer: The information contained in this journal has been reviewed for accuracy and is deemed reliable but is not necessarily complete and cannot be guaranteed. The views expressed in the articles appearing in this Journal are those of the author’s and do Y. R. Warerkar not necessarily reflect the views of the Centre. for private circulation ON TRADE July - September 2018 | 3 ( A Member of World Trade Centers Association, New York ) 60,000 sq.ft. Area available for EXHIBITIONS & CONFERENCES | WTCMumbaiIndia WORLD CLASS VENUES FOR ALL BUSINESS EVENTS Located in ‘Mumbai’ - The heart of financial and commercial capital of India, within 2 hours flight distance from any major city and in close proximity to state government offices, major business hubs, hotels, entertainment zones and famous tourist spots. Expo Center for North Lounge for Board Room Centrum for Exhibitions Exhibition & Committee Room Conferences South Lounge for Jasmine Hall for Conferences Arbitrations State-of-the-art Facilities for Exhibitions & Conferences Ample Car Parking | 24x7 Security Arrangement s with CCTV Surveillance MVIRDC World Trade Centre Mumbai Centre 1 Building, 31st Floor, Cuffe Parade, Mumbai - 400 005, Maharashtra, INDIA t: +91-22-6638 7272 | f: 91-22-2218 8385 | e: [email protected]/[email protected] w: www.wtcmumbai.org CONTENTS July - September 2018 | VOL. 5 ISSUE 1 03 From the Editor’s Desk Cover Story 06 MSME Watch 8 Indian SMEs Need to Strategise their Business to Make Successful Entry and Expansion in Russian Markets 12 Viewpoint BIMSTEC Chief Echoes Indiana Gears Up to Accelerate Partnership 4th Summit Declaration with India Unlocking BIMSTEC Potential: 15 In Conversation Trade, Investment and Connectivity World Tr ade Center Amsterdam Handholds Businesses to Reap Benefits 18 Maharashtra Matters Sangli: Upcoming Food Processing Hub of Maharashtra 21 WTO Focus To Subsidise or Not to Subsidise? 23 Events Trade Promotional Activities Held This Quarter: WTC Mumbai | WTC Bhubaneswar WTC Goa | WTC Jaipur 48 WTI Events Start-ups, Visits, Guest Lectures and Training Programmes ON TRADE July - September 2018 | 5 MSME Watch ON TRADE Indian SMEs Need to Strategise their Business to Make Successful Entry and Expansion in Russian Markets Ravi S K Director, INDORUS ussia is a country having Indian Companies Interest and assistance for products and services biggest land share compared Understanding of Russia having scope in Russia. Rto any other single country, with abundant natural resources in Russia offers excellent opportunities Scope for Trade with Russia oil, natural gas, energy, timber and to interested companies in various valuable minerals, such as copper, fields. Indian companies having Russia offers ample trade opportuni- diamonds, lead, zinc, bauxite, nickel, excellent manufacturing, designing ties for the companies who can tin, mercury, gold and silver, etc. The skills, funds can strategically enter organise their businesses systemati- country has 11 time zones, varying and expand in the Russian market. cally, strategically and professionally. climatic zones and land forms, well The most important factor is to make developed road and rail network and Most of the Indian companies, one’s business successful in Russia, 1200+ airports. investors, importers, exporters, by having a local presence in Russia. manufacturers have keen interest in This is because most of the Russian Moscow, the capital city of Russia is a doing business in Russia but they do SME owners do not speak English full-fledged well developed business not understand the Russian Market and do not trade internationally, they and financial hub with many well enough to proceed. It is very buy locally and pay locally. This has worldwide business houses having a important to know Russian trade well been the system of working for base in the city and many successful enough in order to make the right decades. enterprises spread over the entire strategy for entry. There is need to country. Russia offers plenty of support and nurture business Most international companies have opportunities to SMEs who are well interests from both Governments of made their presence in Russia and equipped in terms of knowledge and Russia and India to grow Indo- supply goods locally to Russian resources to launch their business in Russian trade. Especially SMEs need traders, accept payments locally, this country. this support in both countries. transfer invoice amounts and profits to their home country