Indian Economy, 5th edition (76 page)

CECA

India-ASEAN Comprehensive Economic Cooperation Agreement (CECA) Services and Investment Agreements was signed on August 13, 2009 under the broader framework of the CECA between India and ASEAN which has already come into force. Conclusions of negotiations for the Services Agreement and Investment Agreement have been announced during the ASEAN-India Commemorative Summit held on
December 20, 2012
in New Delhi – legal scrubbing for these agreements were finalized in February, 2013. The agreement will be signed during ASEAN Economic Ministers (AEM)-India Consultations in
August 2013
.

RCEP

During the 20th ASEAN Summit held in Cambodia in April 2012, ASEAN States agreed to move towards establishing an RCEP (Regional Comprehensive Economic Partnership) Agreement among
ASEAN + 6
(Australia, China, India, Japan, Korea, and New Zealand involving ASEAN and its FTA partners. The
objective
of launching RCEP negotiations is to achieve a modern, comprehensive, high-quality, and mutually beneficial economic partnership agreement among the ASEAN member States and ASEAN’s FTA partners. The RCEP will
cover
trade in goods, trade in services, investment, economic and technical cooperation, intellectual property, competition, dispute settlement, and other issues.

BITA

Fifteen rounds of negotiations and a number of inter-sessional and Chief Negotiator level meetings of BITA (India - EU Broad Based Trade and Investment Agreement) have been held till date. The 15th round was held during December 4–7, 2012 in New Delhi. Chief negotiator level meeting was held on
January 29–30, 2013
in New Delhi.

GSTP

The agreement establishing the GSTP (Global System of Trade Preferences)
among developing countries was signed on April 13, 1988 at Belgrade following the conclusion of the First Round of Negotiations. Forty-three countries have ratified the agreement and become participants. India has offered tariff concessions on 70.08 per cent of dutiable tariff lines with an across-the-board
margin of preference
(MoP) of 20 per cent on the applied tariffs prevailing on the date of import. India has also unilaterally offered special concessions to LDC participants by granting an MoP of 25 per cent on 77 per cent of all its dutiable tariff lines. The Cabinet Committee on Economic Affairs (CCEA), in its meeting on August 23, 2012, has granted approval for implementing India’s schedule of concessions. The tariff concessions are to be implemented 30 days after a minimum of four participants ratify their schedules of concessions. So far India and Malaysia have ratified their schedules.

AUTONOMOUS BODIES

The Government of India, time to time did set up many autonomous bodies in the form of boards, councils, organisations, etc. to promote the cause of external trade. A brief account of them is given below here:

Coffee Board

The
Coffee Board
was set up under Section (4) of the Coffee Act, 1942. It is the oldest Board under the Department of Commerce. The primary functions of the Board include formulating and implementing programmes and projects for growth and development of the coffee industry; promoting coffee consumption in India and exports in the international market; supporting research, extension and developmental activities for raising productivity; evolving pest and disease-resistant varieties; and prescribing and enforcing quality standards at all stages. The Board is headed by a Chairperson and functions from Bangalore. The Board administers four Regional Coffee Research Stations, a Coffee Research Institute, a number of Regional Field Stations and Coffee Demonstration Farms.

Rubber Board

The
Rubber Board
was set up under Section (4) of the Rubber Act, 1947 with headquarters at Kottayam and five Zonal Offices, thirty-nine Regional Offices, a number of Field Stations, Rubber Development Centres and Regional nurseries. It is headed by a Chairman. The Board is engaged in the development of the rubber industry. This is done by assisting and encouraging scientific, technical and economic research; supplying technical advice to rubber growers; training growers in improved methods of planting, cultivation and manuring and collecting statistics from the owners of estates, dealers and manufacturers, etc.

Tea Board

The Tea Board was constituted as a statutory body on April 1, 1954 under Section (4) of the Tea Act, 1953. The Tea Board which forms an apex body for the tea industry in India, is headed by a Chairman with its head office at Kolkata. It has sixteen Regional and Sub-Regional Offices spread over different parts of India. Besides, the Board has three foreign offices. The primary functions of the Tea Board include rendering financial and technical assistance for cultivation, manufacture, and marketing of tea; promoting tea exports; aiding research and developmental activities for augmentation of tea production and improvement of tea quality; encouraging and assisting the unorganised small growers’ sector financially and technically; collecting and maintaining statistical data and its publication for the benefit of growers, processors and exporters.

Tobacco Board

The Tobacco Board was set up as a statutory body on January 1, 1976 under the Tobacco Act, 1975. The Board with headquarters at Guntur in Andhra Pradesh, is headed by a Chairman and is responsible for the development of the tobacco industry. The Board also has a Directorate of Auctions at Bangalore. The primary functions of the Board include regulating the production and curing of Virginia Tobacco; keeping a constant watch on the Virginia Tobacco market in India and abroad; ensuring fair and remunerative prices to growers; maintaining and improving existing markets and developing new markets abroad by devising appropriate marketing strategies. The Board is entrusted with the tasks of recommending to the Central Government the minimum prices that may be fixed; regulating tobacco marketing in India and abroad with due regard to the interest of growers, manufacturers and dealers; propagating information useful to growers, traders and manufacturers and purchasing Virginia tobacco from growers when the same is considered necessary for protecting the interests of growers.

Spices Board

The Spices Board was constituted as a statutory body on February 26, 1987 under the Spices Board Act, 1986. The Board has its head office at Kochi and is headed by a Chairman. It has seventeen Regional Offices, thirteen Zonal Offices and thirty-one Field Units. The Board is responsible for the export promotion of 52 spices mentioned in the schedule to Spices Board Act, 1988. The primary functions of the Board are: increasing the production and productivity of small and large cardamom; developing new varieties through selection/ hybridisation for crop improvement; assisting exporters in setting up in-house laboratories; assisting the Government in the development of national quality standards on spices and implementing various export development programmes like promotion of Indian brands abroad.

Export Inspection Council

The Export Inspection Council (EIC), New Delhi, is responsible for the enforcement of quality control and compulsory pre-shipment inspection of various commodities meant for export and notified under the Export (Quality Control and Inspection) Act, 1963. The Council was set up under Section (3) of the Export (Inspection and Quality Control) Act, 1963. It is headed by a Director. The EIC is assisted in its functions by the Export Inspection Agencies(EIAs) located at Chennai, Delhi, Kochi, Kolkata and Mumbai alongwith a network of 41 sub-offices and laboratories to back-up the pre-shipment inspection and certification activities.

Indian Institute of Foreign Trade

The Indian Institute of Foreign Trade (IIFT), New Delhi registered under the Societies Registration Act, 1860, is headed by a Director. The Institute has been conferred ‘Deemed University’ status and is engaged in the following activities: Training of personnel in modern techniques of international trade; conducting market research, area surveys, commodity surveys related to foreign trade; dissemination of information arising from its research and market studies.

Indian Institute of Packaging

The Indian Institute of Packaging (IIP), Mumbai is registered under the Societies Registration Act, 1860. The main aim of this Institute is to undertake research of raw materials for the packaging industry, to organise training programmes on packaging technology and to stimulate consciousness of the need for good packaging.

Marine Products Export Development Authority

The Marine Products Export Development Authority (MPEDA), Kochi is a statutory body set up under an Act of Parliament (No. 13 of 1972). It became functional from April 20, 1972. The Authority is responsible for the development of the marine products industry with special focus on marine exports. With headquarters at Kochi and field offices in all the Maritime States of India, the MPEDA functions with a Chairman as its CEO. Besides, it has Trade Promotion Offices at Tokyo (Japan) and New York (USA).

Agricultural and Processed Food Products Export Development Authority

The Agricultural and Processed Food Products Export Development Authority (APEDA), New Delhi was also set up under an Act of Parliament of 1986 and entrusted with the task of promoting agricultural exports, including the export of processed foods in value added form. It is headed by a Chairman and functions from its headquarters at New Delhi and five Regional Offices.

Export Promotion Councils

Presently there are twelve EPCs under the administrative control of the Department of Commerce. These Councils are registered as non-profit organisations under the Companies Act/ Societies Registration Act. The Councils perform both advisory and executive functions. They are also the registering authorities for exporters under the Foreign Trade Policy, 2004–09.

OTHER ORGANISATIONS

Federation of Indian Export Organisations (FIEO), New Delhi

The Federation of Indian Export Organisations is an apex body of various export promotion organisations and institutions with its major regional offices at Delhi, Mumbai, Chennai and Kolkata. It provides the content, direction and thrust to India’s global export effort. It also functions as a primary servicing agency to provide integrated assistance to its members comprising exporting firms holding recognition status granted by the Government, consultancy firms and service providers. FIEO organises seminars and arranges participation in various exhibitions in India and abroad. The Federation brings out ‘FIEO News’ for creating awareness among its member exporters and importers.

Indian Council of Arbitration (ICA),
New Delhi

The ICA, set up under the Societies Registration Act, promotes arbitration as a means of settling commercial disputes and popularises the concept of arbitration among traders, particularly those engaged in international trade. The Council, a nonprofit service organisation, is a guarantee institution of the Department of Commerce and is eligible for assistance under the Market Development Assistance (MDA) Scheme of the Department. The main objectives of the Council are to promote knowledge and use of arbitration and provide arbitration facilities for amicable and quick settlement of commercial disputes with a view to maintaining a smooth flow of trade, particularly export trade on a sustained and enduring basis.

Indian Diamond Institute (IDI), Surat

The Indian Diamond Institute (IDI) is registered under the Societies Registration Act. It was established in 1978 with the objective of strengthening and improving the availability of trained manpower for the gems and jewellery industry by conducting various Diploma/Post Graduate Diploma level courses in this field. Besides, Sardar Vallabhbhai Jewellery Design and Manufacturing (SVJDM) has been set up in Surat, Gujarat with financial assistance of the Government of India and the Government of Gujarat for providing skilled labour for the Industry.

ADVISORY BODIES

Board of Trade (BoT)

The BoT was set up on May 5, 1989 with a view to provide an effective mechanism to maintain continuous dialogue with trade and industry in respect of major developments in the field of International Trade. It meets at least once in a year. The Commerce and Industry Minister is Chairman of the Board. Its official membership includes Secretaries of the Ministries of Commerce and Industry, Finance (Revenue), External Affairs, Textile; Chairman of Indian Trade Promotion Organisation (ITPO), Chairman/ MD of Export Credit and Guarantee Corporation of India Limited (ECGC), MD/Exim Bank and Deputy Governor of Reserve Bank of India. The non-official members are Federation of Indian Chamber of Commerce and Industry (FICCI); Associated Chamber of Commerce and Industry (ASSOCHAM), Confederation of Indian Industry (CII), Federation of Indian Export Organisations (FIEO), All India Handloom Farmers Marketing Cooperative Society, representatives of various Trade and Industry sectors, media and other eminent personalities in the field of export and import trade. The broad terms of reference of the Board of Trade are as follows: To advise the Government on policy measures for preparation and implementation of both short-and long-term plans for increasing exports in the light of emerging national and international economic scenario; To review export performance of various sectors, to identify constraints and suggest measures to be taken both by the Government and the industry/trade consistent with the need to maximise export earnings and restrict imports; To examine the existing institutional framework for exports and suggest practical measures for reorganisation/ streamlining it with a view to ensure co-ordinated and timely decision making; to review the policy instrument, package of incentives and procedures for exports and suggest steps to rationalise and channelise incentives to areas where they are needed the most.

Export Promotion Board (EPB)