PHDCCI organizes Video Conference on Export Promotion & Risk Management

No.PR-269 September 26, 2020 New Delhi PHDCCI organizes Video Conference on Export Promotion & Risk Management PHD Chamber of Commerce and Industry (PHDCCI) organized a Video Conference on Export Promotion and Risk Management here today where experts highlighted GOI policies for export promotion and various instruments available for export risk management. Presenting the Industry perspective, Mr. Anil Khaitan, Former President and Mentor, PHD-MSME Mentoring & Guidance Centre said that exports are the lifeline of national economy. He lamented that our country has not been able to exploit the full export potential. Mr. Khaitan added that as a number of risk factors are involved in international trade, therefore, it is important for exporters to have a robust risk management strategy in place. Mr. Khaitan mentioned that pricing and quality are most important factors in international trade and exporters must ensure approval of their samples and negotiate prices before shipment.  He said that to avoid legal risks, the contracts with buyers should be properly drafted.  Advice from forex experts and currency hedging can be effective in protecting exporters against exchange rate risks. Briefing about the services offered by PHD Chamber’s  to exporters and MSMEs, Mr. Saurabh Sanyal, Secretary General, PHDCCI mentioned that PHD MSME Mentoring & Guidance Centre provides capacity building, policy advocacy and virtual incubation services besides helping entrepreneurs for registration on GeM and Udyam portals. He mentioned that GOI’s TIES scheme will go a long way in promoting exports from the country. In his Keynote Address Dr. H P Kumar, Former CMD, NSIC & Advisor, PHDCCI mentioned that while India exports over 7500 products to 119 countries but the value of exports is very low and does not match the potential that exists in the country. He said that major reason for low exports is lack of information. He suggested that to jack up exports, relevant information like demand and trends prevalent in various international markets should be made available to exporters through a web portal.  He said useful information regarding exports is available on Chamber’s MSME portal which can be accessed by the exporters.  Mr. Rakesh Khurana, Regional Manager, NSE informed that MSMEs can raise capital by listing on NSE and create value for their company as well as their investors. Mr. Khurana mentioned that the eligibility criteria for listing on NSE has been simplified and also briefed about the benefits of listing including enhanced visibility and credibility. He also mentioned that the Governments of Punjab, Haryana, H.P. and Rajasthan offer subsidy to MSMEs for listing on NSE. Explaining the NSE tools for Forex Risk Management Mr. Vipul Khujuria from NSE said that to protect both importers and exporters from fluctuations in forex value, NSE offers Futures and Options tools. He said that NSE services are available from 9 a.m. to 5.00 p.m and the rates are same for all companies irrespective of their size. Mr. Sanjay Kumar, Branch Manager, ECGC made a presentation to highlight about the risks associated with international trade and various products offered by ECGC to safeguard the interest of the exporters. Highlighting the Exports   Promotion Schemes of GOI for boosting exports, Mr. Jaipal, Deputy Director, DGFT briefed about the Advance Authorization Scheme and Export Promotion Capital Goods Scheme. He stated that under the Advance Authorization Scheme exporters are allowed to import duty free raw material against an export obligation with at least 15% value addition in the export product. The value of input is determined on the basis of one of three schemes -Standard Input / Output or Self Certification or Self Ratification Scheme. The exporter has to complete the export obligation within a stipulated time period. Non fulfilment of obligation attracts penalty whereas incentives are given for early completion of the obligation. Mr. Jaipal stated that under the Export Promotion Capital Goods Scheme of FTP, manufacturer exporters are allowed to import duty free machines for manufacture of quality export products. The export obligation of the manufacturer is 6 times the value of duty saved and has to be fulfilled within 6 years.  The time limit can be extended on payment of composition fee.  LUT / BG is applicable which can be released on successful discharge of the export obligation. Earlier, welcoming the speakers and participants, Mr. Mohit Jain, Chair, Haryana State Chapter, PHDCCI mentioned that in recent times India is witnessing slowdown in exports with its traditional partners. Under these circumstances, we need to set in motion strategies and policy measures which catalyze growth of exports in several different sectors as well as in newer markets. Like any business transaction, risk is also associated with goods to be exported in an overseas market. Risk in international trade is quite different from risks involved in domestic trade. So, it becomes important to all the risks related to export in international trade with an extra measure and with a proper risk management. Today’s program has been organized to discuss various strategies that can be adopted by an exporter to avoid the risks associated with the export of goods. On the conclusion of the program, Mr. Sanjay Gupta, Convener, Ambala Zone, Haryana State Chapter, PHDCCI thanked the speakers for sharing very useful and valuable information and hoped the same will help exporters to enhance their business. He also thanked the participants for joining the Session. Ends Media Division PHD Chamber of Commerce and Industry