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Chemexcil's 5-Year Export Promotion Strategy And

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Chemexcil's 5-Year Export Promotion Strategy And CHEMEXCIL’S 5-YEAR EXPORT PROMOTION STRATEGY AND VISION DOCUMENT 1 Acknowledgements We deeply acknowledge the contributions from the following experts who have shared their experiences with us in the course of preparation of this report. Our sincere thanks to: 1. Mr. Satish W. Wagh, Chairman & Member Basic Inorganic & Organic Chemicals including Agro Chemicals Panel 2. Mr. S. G. Mokashi, addl. Vice chairman & Member Basic Inorganic & Organic Chemicals including Agro Chemicals 3. Mr. Harin Mamlatdarna, Member Dyes & Dye Intermediates Panel 4. Mr. Ashwin Shroff, Member Chemical Panel 5. Mr. Nitin S. Nabar, Member Cosmetics Panel 6. Mr. Abhay V. Udeshi, Chairman - Castor Oil & Specialty Chemicals Panel 7. Mr. Ajay K. Kadakia, Chairman - ME Panel 8. Mr. Bhupendra Patel, Member Dyes & Dye Intermediates Panel 9. Dr. Deepak Birewar, Member Dyes & Dye Intermediates Panel 10. Dr. Smita Naram, Member Cosmetics, Toiletries & Essential Oil Panel 11. Mr. Bharat Mehta, Member- ME Panel We would also like to express our gratitude towards Mr. S.G. Mokashi - Addl. Vice Chairman, Mr. Suhas G. Bharadi - Executive Director, officers and staff from CHEMEXCIL. Individual members may not endorse all aspects of this report. We sincerely thank industry leaders, experts, CHEMEXCIL member organizations and all other participants whose valuable inputs have helped in developing this report. We are thankful to CHEMEXCIL for providing us an opportunity to develop this report which could benefit the CHEMEXCIL members in assessing the opportunities and improving their competitiveness in coming years. As always, it was an insightful experience for the team to materialize this report. ------------ ------------ 1 Vision 2025 To excel in positioning basic chemicals, cosmetics and dyes exports from India as products of choice in the regional and global markets Mission To enable and assist the members of the Basic Chemicals, Cosmetics & Dyes Export Promotion Council (CHEMEXCIL) in enhancing exports of chemical products to realize the full potential in global markets through concerted efforts & deliver duties by the virtue of being a nodal government agency Goals and Objectives To be an interface with the Industry and the Government of India to formulate Export-oriented Policies and also to create a favorable environment to augment exports of the above items from India. Participate in international exhibitions being held abroad and invites overseas delegations to India to promote our exports & establish long term strategic alliances Sponsor trade delegation, study teams and sales teams to various markets abroad Organize Workshops/Seminars on various trade and policy related issues Provide consultancy and guidance services for chemical exporters Assists its members in locating and pinpointing the source of their requirements. It also helps to effect a smooth trade deal between buyers and sellers to offer a total service package, completely free. Acts as a forum for representation of the trade related issues & as a liaison between the exporting community and the policy planners Deliver duties by the virtue of being a nodal agency appointed by the Ministry of Commerce & Industry for compliance of REACH legislation of the European Union. Participate in the Grievance Committee Meetings organized by the DGFT from time to time and take up issues of the member-exporters connected with Customs, Central Excise, Port Authorities, etc. and try to resolve the same Participate in the Review Meetings as well as Task Force Meetings being organized by the Ministry of Commerce & Industry from time to time to chalk out strategies for promotion of exports of the items coming under the purview of the Council with presentations covering suggestions/views being received from its members. Prepare and submit to the Ministry of Commerce & Industry Annual Action Plan for promotion of exports of the items coming under its purview, covering Budget Proposals for participation in various international exhibitions/Buyer Seller Meets/ being held abroad as well as in India for the benefit of its member-exporters. Issue Recommendation letters addressed to various overseas Consulates/Embassies in India for issue of Visas for the member-exporters for attending Exhibitions/delegations as well as export/business promotion tours abroad. Issue Non-preferential Certificates of Origin to its member-exporters for export of their items to various countries abroad on the condition that the said items are covered under our purview and are manufactured in India as authorized by the Ministry of Commerce & Industry Organize Export Award Function to felicitate outstanding exporters on their excellent export performance Become a ‘one contact point’ for sourcing information on any of the above products from India 2 Table of Contents List of Figures .......................................................................................................................................... 4 List of Tables ........................................................................................................................................... 6 Executive Summary ................................................................................................................................. 8 I. Indian Chemical Industry .......................................................................................................... 12 II. India’s Chemical Exports Scenario ............................................................................................ 15 III. The New Free Trade Policy (FTP) and the Government Initiatives ........................................... 18 IV. Key Assumptions ....................................................................................................................... 20 V. Panel 1- Analysis ....................................................................................................................... 22 A. India Exports (Volume Trend Analysis) - Panel 1 ............................................................................. 22 B. Global Imports (Volume Trend Analysis) ............................................................................................. 28 C. Strategic Insights ............................................................................................................................................. 33 D. Key Recommendations ................................................................................................................................. 42 VI. Panel 2 - Analysis....................................................................................................................... 50 A. India Exports (Volume Trend Analysis) - Panel 2 ............................................................................. 50 B. Global Imports (Volume Trend Analysis) ............................................................................................. 58 C. Strategic Insights ............................................................................................................................................. 65 D. Key Recommendations ................................................................................................................................. 75 VII. Panel 3 – Analysis ...................................................................................................................... 82 A. India’s Exports (Volume Trend Analysis) – Panel 3 ......................................................................... 83 B. Global Imports (Volume Trend Analysis) ............................................................................................. 88 C. Strategic Insights ............................................................................................................................................. 93 D. Key Recommendations ............................................................................................................................... 104 VIII. Panel 4 – Analysis .................................................................................................................... 111 A. India’s Exports (Volume Trend Analysis) – Panel 4 ....................................................................... 112 B. Global Imports (Volume Trend Analysis) ........................................................................................... 117 C. Strategic Insights ........................................................................................................................................... 121 D. Key Recommendations ............................................................................................................................... 130 IX. Additional Recommendations for the Government ............................................................... 136 X. Recommendations Summary for CHEMEXCIL......................................................................... 142 XI. List of Sources & References ................................................................................................... 144 XII. Annexure ................................................................................................................................. 145 3 List of Figures Figure 1: Sector-wise Breakdown of Indian Chemical Sales in FY15 (In USD Bn) .................... 12 Figure 2: Indian Chemical Exports in USD million (FY16) ......................................................... 16 Figure 3: Total Chemical Exports Trends ................................................................................
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