FEDERATION OF FREIGHT FEDERATION OF FREIGHT FORWARDERSFORWARDERS’’

ASSOCIATIONS IN INDIAASSOCIATIONS IN INDIA

COUNTRY SPECIFIC INFORMATION ON COUNTRY SPECIFIC INFORMATION ON REPUBLIC OF INDIAREPUBLIC OF INDIA

PRESENTATION BY PRESENTATION BY

Mr. PANKAJ SHAHMr. PANKAJ SHAHHON. SECRETARYHON. SECRETARY

FEDERATION OF FREIGHT FORWARDERSFEDERATION OF FREIGHT FORWARDERS’’ASSOCIATIONS IN INDIA ASSOCIATIONS IN INDIA

IMPACT ON INDIAN ECONOMYIMPACT ON INDIAN ECONOMY

Indian economy was not totally depended Indian economy was not totally depended on exporton export--led growthled growth..Strong Banking sector not overly exposed Strong Banking sector not overly exposed to subto sub--prime crisis.prime crisis.Foreign exchange reserves remained at Foreign exchange reserves remained at 110% of total external debt at the end of 110% of total external debt at the end of December, 2008.December, 2008.IndiaIndia’’s exports reduced by 33% and import s exports reduced by 33% and import by 20% in the last quarter of the year.by 20% in the last quarter of the year.

Nations GDP Grows by 6.7% in Nations GDP Grows by 6.7% in 20082008--20092009

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10

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

8.5%8.5% 7.5%7.5% 9.5%9.5% 9.7%9.7% 9.0%9.0% 6.7%6.7%GDPGDP 7.5% Expected7.5% ExpectedInflation rate 0.61% on 2009,May 16th.Inflation rate 0.61% on 2009,May 16th.

PRIMARILY AFFECTED SECTORSPRIMARILY AFFECTED SECTORS

INFORMATION TECHNOLOGY & INFORMATION TECHNOLOGY & SOFTWARE SOFTWARE –– 75% IS EXPORTS.75% IS EXPORTS.

GEMS & JEWELLERY GEMS & JEWELLERY –– 300, 000 JOBS 300, 000 JOBS WERE LOST IN NOVEMBER, 2008WERE LOST IN NOVEMBER, 2008

TEXTILES & HOSIERY. TEXTILES & HOSIERY.

SECONDARILY AFFECTEDSECONDARILY AFFECTED

Real Estate & Housing Real Estate & Housing AutomobileAutomobileEngineering MachineryEngineering MachineryHospitalityHospitalityTourismTourism

FEDERAL SUPPORTFEDERAL SUPPORT

Firm on economic commitments.Firm on economic commitments.To implement long pending To implement long pending reforms.reforms.To revisit infra projects.To revisit infra projects.Interest rates slashed. Interest rates slashed. World bank to invest 1 bn USD in World bank to invest 1 bn USD in infra.infra.

INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE DEVELOPMENT PRIORITY AREASPRIORITY AREAS

•• Transport Transport •• PowerPower•• CommunicationCommunication

TRANSPORTTRANSPORTHIGHWAYSHIGHWAYSRAILWAYSRAILWAYSPORTSPORTSAIRPORTSAIRPORTSHuge allocation of funds for transport Huge allocation of funds for transport segment.segment.May observe the maps in subsequent May observe the maps in subsequent slides.slides.

22ndnd LARGEST RAILWAYSLARGEST RAILWAYS NETWORKNETWORK

PORT DEVELOPMENTPORT DEVELOPMENT

INLAND CONTAINER DEPOTsINLAND CONTAINER DEPOTs

Large number of ICDs are functioning Large number of ICDs are functioning throughout the country.throughout the country.In JNPT Customs area alone there are more In JNPT Customs area alone there are more than 26 CFS and few more are under than 26 CFS and few more are under implementation.implementation.Many ICDs under clearance throughout the Many ICDs under clearance throughout the nation.nation.Large number of container yards for storage Large number of container yards for storage are mushrooming all over India.are mushrooming all over India.

AIRPORTSAIRPORTS

BRAND INDIABRAND INDIA

The largest railway network next to Russia.The largest railway network next to Russia.South Asia's biggest sea port Krishnapattnam South Asia's biggest sea port Krishnapattnam commissionedcommissioned-- 11stst phase.phase.Double stack container rake introduced Double stack container rake introduced connecting port pipavav. connecting port pipavav. Logistics hub commissioned at NagpurLogistics hub commissioned at NagpurThe first Air cargo hub commissioned at The first Air cargo hub commissioned at Nagpur Nagpur in 2008.in 2008.

SIMPLIFIED OPERATIONSSIMPLIFIED OPERATIONS

GENERALGENERALImplementation of VAT.Implementation of VAT.Modernised banking system.Modernised banking system.Extremely efficient & cost effective Extremely efficient & cost effective communication system.communication system.DeDe-- regulations to simplify the hurdles faced regulations to simplify the hurdles faced at different sectors.at different sectors.Privatization in Indian railways.Privatization in Indian railways.Indian Railways turned from bulk Indian Railways turned from bulk transporter to multitransporter to multi--modal transporter. modal transporter.

INDIAN CUSTOMSINDIAN CUSTOMS

Border barriers are turning as facilitators.Border barriers are turning as facilitators.Risk Management System introduced.Risk Management System introduced.Accredited Client Programme implemented. Accredited Client Programme implemented. Customs documentation filing on line.Customs documentation filing on line.EDI / ICEGATE available on online. EDI / ICEGATE available on online. Regulatory transactions like, ImportRegulatory transactions like, Import-- Export Export License issuance etc. available on line.License issuance etc. available on line.

IMPORT CLEARANCE IMPORT CLEARANCE SCRUTINYSCRUTINY

•• Bill of EntryBill of Entry•• InvoiceInvoice•• Packing ListPacking List•• Bill of LadingBill of Lading•• Insurance PolicyInsurance Policy•• Certificate of OriginCertificate of Origin•• Indent i.e. Order confirmation by supplierIndent i.e. Order confirmation by supplier•• Acceptance i.e. Order confirmation by supplierAcceptance i.e. Order confirmation by supplier•• Literature of the product if needed Literature of the product if needed •• Catalogue of the goods if needed Catalogue of the goods if needed •• Import License or OGL declarationImport License or OGL declaration•• Amount of commission paid / not paid certificateAmount of commission paid / not paid certificate

INSTANT CLEARANCE OF CARGO IN NORMAL CONDITIONS.INSTANT CLEARANCE OF CARGO IN NORMAL CONDITIONS.

REGULATORY NORMSREGULATORY NORMSShipping Trade Practice Act under promulgation.Shipping Trade Practice Act under promulgation.An achievement by FFFAIAn achievement by FFFAIHandling of Cargo in Custom Areas Regulation 2009 Handling of Cargo in Custom Areas Regulation 2009 implemented.implemented.

( More responsibilities on custodians of cargo)( More responsibilities on custodians of cargo)Efforts by government to reduce logistics element in Efforts by government to reduce logistics element in GDP from 13% to 10GDP from 13% to 10--11%.11%.( Indicates infra development & other regulatory reforms)( Indicates infra development & other regulatory reforms)Government of India has recently issued notification Government of India has recently issued notification for setting up of Logistics Council of India, which will for setting up of Logistics Council of India, which will be a reality very shortly.be a reality very shortly.( A body to study & tackle the logistics issues)( A body to study & tackle the logistics issues)

WELCOME TO WELCOME TO INDIAINDIA