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AIAI Newsletter July – December 2017

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AIAI Newsletter July – December 2017 President CONTENTS Mr. Vijay Kalantri Editorial Board EVENTS Ms. Rupa Naik - Honorary Director Ms. Sangeeta Kalantri Jain - Director Exporters voice issues at AIAI meeting 4 Ms. Renu Verma - Director Vast Scope to enhance India-Uzbekistan Trade Ties 6 Editorial Assistant State of Maharashtra to have Integrated Water Plan 8 Ms. Yogita Ghuge – Assistant Director Inclusive cluster development - Key to MSME growth 10 Ms. Shweta Virdikar- Manager (Digital Media & Coordination) Poland offers business opportunities for India 12 Associate Bodies RISE Summit 2017 15 Indo Polish Chamber of Commerce (IPCC) EB-5 Visas, An option for Indian green card seekers 16 Indo Mauritius Chamber of Commerce (IMCC) Indian Council of Foreign Trade (ICOFT) More than 100 start-ups attended orientation 17 Young Entrepreneurs’ Society (YES) workshop organized by MSSIDC, AIAI and WTC Maharashtra Port Developers Association Mumbai (MPDA) Suriname offers huge opportunities for Indian 18 Russia India Trade House Mumbai (RITHM) companies Brazil to step up strategic technological partnership Editorial Office 20 New Excelsior Bldg, 6th Floor, A. K. Nayak with India in agribusiness Marg, Fort, Mumbai - 400 001 Indian businesses must take advantage of FEZs 22 Tel: 022- 2201 9160 / 2201 9265 in Uzbekistan Fax: 022- 2201 9764 / 2201 9760 Introduction of GST in India offers huge opportunities e-mail: [email protected] 24 of Investment and Ease of Doing business Printed and Published on behalf of EPFO settlement time to be reduced to 3 days 27 All India Association of Industries (AIAI) by from 20 days, says Mr. Aditya Sah Ms. Sangeeta Kalantri Jain, Director, AIAI. Celebrating 25 years of Bilateral and Cultural 28 AIAI News is the official newsletter of All India Relationship between India and Uzbekistan Association of Industries (AIAI). The material printed in SPOT LIGHT this newsletter is not necessarily endorsed by AIAI. The newsletter covers events organised by AIAI and news, AIAI’s Session at WTO Public Forum 2017 33 articles reprinted from other trade journals/ sources. Timely and Adequate Finance - Key to MSME AIAI News is posted free of charge to the members 41 of the association. AIAI is a not for profit Industry Growth association established since 1956 and is registered under sec. 25 of the Companies Act, 1956. SPECIAL FEATURES World Trade Expo generates tremendous response For private circulation 45 from 37 countries and 4 state governments Printed at Union Press Sir H. C. Dinshaw Bidg, 16. Horniman Circle, COUNTRY PROFILE 13. Homji St., Fort, Mumbai - 400 001. Tel :- 22660357 / 22665526 Vietnam - an Attractive Destination For Indian Email :- [email protected] 49 Investment and Trade President’s Desk Dear Members, The year 2017 has been momentous in particular the last six months with the implementation of GST, a landmark reform initiated by Hon’ble Prime Minister Shri Modi for encouraging trade and investment, the year has indeed seen several development. Implementation of GST was biggest Tax reform in India since Independence, effective from 1st July, 2017. AIAI compliments government’s efforts and also welcomes initiatives announced by the government for the economic development of the nation. Further we feel that revival in manufacturing and redressal of GST challenges will boost India’s exports, job creation and growth. The government needs to take some pragmatic decisions to address issues faced by exporters to enhance exports. India’s share in global exports is minimum. The favourable foreign trade policy will surely help in enhancing India’s participation and thereby help to generate employment. The year 2017 marked the completion of 25 years of ASEAN-India relations and called for a deeper and multifaceted engagement on a sustained basis. The Ministry of External Affairs, Government of India organized the annual programme ‘Delhi Dialogue’ focusing on ‘Charting the course for India- ASEAN’ relations for the Next 25 Years. All India Association of Industries was associated with the Ministry of External Affairs in organizing a session at Delhi Dialogue IX. Besides, AIAI organized a session on “India – ASEAN Partnership: Building Regional Network to promote SMEs and Women’s Empowerment” during the programme. AIAI jointly with World Trade Centre Mumbai organized ‘World Trade Expo2017, a first-of-its- kind event in Mumbai to promote international trade and opportunities to diplomatic missions to showcase investment potential. This was a great success with the participation of more than 37 countries, four state governments and more than 3,000 visitors. AIAI also attended annual WTO Public Forum Meeting in Geneva and organized a working session on “Mitigating the Challenges of Sustainable Development through the Adaption of Clean Technologies”. On its part, AIAI continued its international engagement with focused discussions with visiting delegation from overseas, which are featured in the newsletter. AIAI also contributed significantly in ILO and GFMD meetings in Geneva and Berlin respectively On behalf of the members AIAI has represented its recommendation and suggestions to State and Central Government on GST, NPAs, Labour reforms, MSME financing and on other issues pertaining to trade and industries. I take this opportunity to express my sincere gratitude to our members for their support and extend my warm greetings for a productive and successful year ahead. Assuring AIAI’s ambitious agenda and a wide array of activities will surely benefit our members in coming years. Thanking you, Vijay Kalantri EVENTS Exporters voice issues at AIAI meeting From (L-R): Mr. K.M. Hiralal, Deputy DGFT, DGFT Mumbai, Ms. Rupa Naik, Executive Director, All India Association of Industries, Dr. Sonia Sethi, Additional DGFT, DGFT Mumbai, Mr. Firoze Adhyarujina, Sr. Advocate Supreme Court and Legal Advisor and Mr. P. S. Kamble, Assistant DGFT, DGFT Mumbai n Open House Meet with the Directorate be considered by the Ministry of Commerce before General of Foreign Trade Mumbai was releasing the mid-term review of Foreign Trade A organised by All India Association of Policy (2015-20) in September 2017”. Industries in association with World Trade Centre Allaying the fears of exporters, Dr. Sethi remarked, Mumbai. Dr. Sonia Sethi, IAS, Additional Director “GST will make our exports competitive in the General of Foreign Trade, Directorate General long run. There may be some teething troubles in of Foreign Trade, Mumbai presided over the the short term. All the ministries of Government Meet. Dr. Sethi said, “Enhancing India’s share in of India are working overtime to address these world exports is the top priority of Directorate operational issues.” General of Foreign Trade (DGFT). In the next two weeks, DGFT will hold a series of interactions Dr. Sethi also mentioned the recent initiatives with exporters to understand their concerns and taken by DGFT to address issues faced by grievances in adopting the Goods and Services exporters. “In the last one year, DGFT has Tax (GST). This Open House Meeting is a timely maintained ‘zero pendency’ of work by clearing opportunity for DGFT to invite actionable all the files of importers and exporters within suggestions from exporters to address the key reasonable timeframe. In the immediate future, issues on GST. I assure that your suggestions will all the functions of the DGFT will be digitised to 4 AIAI Newsletter EVENTS improve performance efficiency and reduce human logistics. After the implementation of GST, most interface. DGFT is holding Open House Meeting state governments have abolished check posts every Wednesday to address the concerns of in state borders, thereby improving the ease of traders. Our Grievance Redressal Committee at movement of goods across borders.” the Mumbai zonal office is functioning efficiently On this occasion, senior officials from DGFT in this matter.” explained relevant changes in the procedures Dr. Sethi also remarked that in future, DGFT and implementation of various export promotion Mumbai plans to work with the Government of schemes of the Government of India under the Maharashtra to enhance exports from the state. GST regime. Mr. Firoze B. Andhyarujina, Senior Advocate, High During the event, exporters from gems and Court Mumbai who was present on the occasion jewellery, textiles, food products and other sectors said, “GST is a visionary reform in India’s indirect raised their concerns regarding GST and offered taxation system. GST has converged 22 indirect suitable suggestions to DGFT. AIAI and WTC taxes into three taxes and thereby simplified the Mumbai will prepare a detailed representation on indirect tax system. However, there are several issues faced by exporters pertaining to GST and unresolved issues in the GST system. These issues will submit it to DGFT for active consideration. include the issue of double taxation of re-exports, The event was attended by representatives adjustment of input tax credit, compliance with from micro, small and medium enterprises, large procedures, tax implication on construction corporate houses, merchant exporters, consul contracts involving joint venture of foreign and generals of foreign countries, foreign trade Indian companies etc.” consultants, financial institutions, industry bodies Ms. Rupa Naik, Executive Director, All India and other stakeholders. Association of Industries remarked, “GST is a The open house meet was held at the World welcome reform in India’s indirect tax system as Trade Centre Mumbai on August 18, 2017. it would reduce the time and cost incurred on AIAI hails reduction in Tax Rate on GST The All India Association of Industries (AIAI) welcomes the reducing rate of 227 and pruning the same at 28% least to 50 items is a step in right direction and reduction in the tax structure said Mr. Vijay Kalantri, President, All India Association of Industries (AIAI). There is further need to prune the list of 28% slab to 12% and 5% as the case may be for eg. in case of Air conditioners and coolers which is no more a luxury but necessity. AIAI further feels there needs to do simplification of forms and rules in stringent measures like prosecution various actions and penalties which should be only in rare case added Mr.
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