Panel Discussion on India’s Foreign Trade – Strategies for Growth
Centre for International Business Policy (CIBP), BIMTECH on 18 July 2014 organized a discussion on India’s Foreign Trade – Strategies for Growth. The participants in the discussion were officials of Directorate General of Foreign Trade (DGFT). DGFT is an apex body under Ministry of Commerce for policy implementation and to boost export from India. The panel included Mr. Sumeet Jerath (IAS), Addl DGFT- North Zone, Dr. Amiya Chandra (IAS), Joint DGFT, Mr. Gagandeep Singh, Assistant DGFT and Ms. Tanu Singh, Assistant DGFT. They were given a hearty welcome by Dr. H. Chaturvedi, Director, BIMTECH. He pointed that international business provides opportunities for budding entrepreneurs and several of BIMTECH’s alumni are doing well in global business operations.
Dr. Anuj Sharma, Associate Professor, CIBP, BIMTECH also welcomed the guests and provided an overview of the context of the session. The diversification of export markets, increase in export of capital and technological intensive goods, current problems of India’s export sector and 10% growth in exports in June, 2014 were some of the points raised by him in his welcome speech.
The first speaker Mr. Sumeet Jerath, introduced himself and other speakers as the BEST (Business Excellence Support Team) under the NIRYAAT Bandhu program which has been developed to mentor the first generation entrepreneurs likely from B schools and to inculcate the DNA of international business. He started by highlighting few macroeconomic indicators of the year 2013-2014 for India. He mentioned that double digit inflation and single digit manufacturing growth figures are worrisome. He mentioned that the current account deficit was managed by the import compression through duties and non-tariff barriers especially for gold. He told the students of evaluating the prospect of each sector by calculating the net foreign exchange of exports and imports. He also gave a brief overview of the chapters of the Foreign Trade Policy and Handbook of Procedures governing the international export-import transactions. He gave the wining mantra of ‘fire in the belly’ and ‘be like a bumble bee’ for students to be successful ‘Niryataks’.
The second speaker, Mr. Gagandeep Singh gave his talk on the analysis of export potential through market attractiveness index and product potential index. Some of the criteria pointed out by him with respect to product scans were export size, export dynamism, demand size, demand growth, trade balance, resources, intermediate inputs and prices. The market attractiveness or export potential index is a combined index of export performance and world demand statistics. His talk also subscribed to the concept of Revealed Comparative Advantage (RCA) and Gravity Model of trade as the basis of market attractiveness index.
Ms. Tanu Singh, the third speaker of the day gave her presentation on the prospects of Textile exports from India to rest of the world. She informed the audience about the growing preference of man-made fiber over natural fiber and the trend of eco friendly fibers in future. China, Bangladesh, Vietnam and Turkey are the major competitors of India and the SWOT analysis presented by her was very comprehensive. She recommended a strategy of targeting the markets like African and Latin American.
The last speaker of the session, Dr. Amiya Chandra gave a very informative lecture on the basic concepts of the International trade like categories of exports, types of exporters, basic tenets of chapters of the foreign trade policy. He drew the attention of the audience on the emergence of Dubai as Centre for trade between India and Pakistan. He pointed out three hypotheses which are the foundation of the modern global trade i.e. World trade has grown on an average nearly twice as fast as world production, south-south trade rose from 8% to 24% for the period 1980-2011 and international trade is increasingly becoming regional in nature. He explained the essence of all the chapters of the handbook of procedures and the foreign trade policy in very simple terms.
The lectures were followed by an equally engrossing question & answer session during which the students raised queries on the efficiency of the Chinese Clusters in comparison to India and the benefits to India by entering into an FTA with New Zealand.
The day ended with a vote of thanks given by Dr. Anupam Varma, Deputy Director, Chairperson CIBP, BIMTECH. He remarked that a feast of knowledge and information had been unfolded before us. He conveyed his gratitude to the NIRYAAT Bandhus for their efforts in igniting the entrepreneurial spirit of the students as well as in contributing to their managerial skills in a global business environment.