Make in Maharashtra & Export : Promotional initiatives for Enhancing Export Competitiveness through Recent Initiatives Of GOM+GOI together : ~ by Dilip Shankar Guralwar Senior General Manager District Industries Center Aurangabad Industries Department, Government of Maharashtra
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M ake in M aharashtra & Export · LSI) IN 2016-17, few amongst them are Bajaj Auto Ltd 6500crore,Mylan Lab Ltd Rs 2230 Cr,Ajanta pharma 847,Garware polyester throgh JNPT ... Export
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Make in Maharashtra & Export :
Promotional initiatives for Enhancing Export
Competitiveness through Recent Initiatives
Of GOM+GOI together : ~
by
Dilip Shankar Guralwar
Senior General Manager
District Industries Center
Aurangabad
Industries Department, Government of Maharashtra
Defining Export Profile of Aurangabad District
• -Total world export of India is 1.64%, f 8 US illio dollar’s of Glo al Merchandise(260USbillion dollars)-Ranking 19th in World
• -MSME contributes 45% of Manufacturing output,over 40% of total export from I dia & arou d 8% of I dia’s GDP
• -2% decline in last 5 years-What China & Germany exports in 30-40 days is exported by India in 9 years
• -In Aurangabad out of 174 enterprises having Export-Import code no export of Rs 13985 Crores is only undertaken by 56 enerprise…(11 MSME+ Mega & LSI)IN 2016-17, few amongst them are Bajaj Auto Ltd 6500crore,Mylan Lab Ltd Rs 2230 Cr,Ajanta pharma 847,Garware polyester throgh JNPT Raigad,Mumbai,SAHAR Airport,ICD Maliwada,Waluj,JNPT, through export cluster sectors like automobile(9),Pharma& bulk drug(8),Plastic(12),Diesel engine(5)tubes & tyres(2)
• -Major Trade related Infrastructure facilities required are Testing,Design center,Vibrant presence of DGFT,EPCG,EPCS,APEDA,Quarantine,Smart Start up center for Outreach awareness:- new scheme TIES for CETP & Internal Roads, International convention and exhibition center
Objectives of FTP& EXIM Policy 2015-2020
• -To achieve total export of 900 Us million dollars by 2019-20
• -To raise I dia’s share i World Trade fro 2% to 3.5%
• -To have a required sync with initiatives of Digital India,Make In India & Maharashra,Magnetic Maharashtra,Export Promotional Schemes & EXIM Policy…by offering specific incentives like
-1) Interest Equalization Scheme for MSMEs across all ITC(HS) Codes by granting 3%rate subvention for pre & post shipment Rupee Export Credit with effect from 1-4-2015 for 5 years
2)Merchandise export from India Scheme(MEIS) incentivizes exports of all notified products by MSME ,by granting duty credit scrips @2,3,4,5,& 7% of FOB value of exported goods
3)Exporters achieving exports beyond a threshold limit are granted Status Recognition which entitle them for certain privileges like faster clearance of goods by customs & provision for free of cost exports, exemption from furnishing bank guarantee under EPS.MSMEs r entitled for double weight age in counting export performance .
4) Under Niryat Shree & Niryat Bandhu scheme,90 clusters identified by DGFT are being targeted for imparting training/seminars regarding issues of international trades through 28 EPCs,6 Commodities Boards APEDA & AMPEDA & RBI as compounding authority for all contraventions within 180 days to consolidate & amend the law relating FOREX with the objective of facilitating external trade & trade & payments & for promoting orderly developments & maintenance of foreign exchange market in India from extreme prohibitory stance of FERA to fascilitary stance of FEMA,, as we are in much secured position with the FOREX reserve touching to new heights of USD 411 billion .We have now ushered into Period of comfortable reserves & far left behind the period of scarcity.
*-Highlight of midterm review of FTP announced in December 2017 include:-1) rate of incentives increased from 2% to 4%for labour incentive MSME sector 2)Incentives under Service Exports from India Scheme for notified service providers have been increased by 2%....3) Anew scheme of self assessment based duty free procurement of inputs required for exports have been introduced 4) New Logistic division has been created in Department of Commerce to develop & coordinate integrated development of logistic sector & introduction of technology based intervention in this sector.
a)Marketing development & assistance for exporters programme & export promotion scheme b)Ten interventions of National Manufacturing Competitive Programme
• a)Marketing development & assistance & Training & man power development:--1)participation in international exhibition2)training programme in packaging for exports3)marketting development & assistance for exporters 4)National award for quality exporters4)Export promotion services like EPB Registration,gold /silver card,government to business portal..e-Biz
• b)Ten interventions of National Manufacturing Competitive Programmed for five years + performance & credit rating by NSIC
• 1)BAR code under MDA scheme2)Entrepreneural & managerial development of MSME through Incubators 3)enabling manufacturing sector to be competitive through QMS & QTT 4) Building awareness on IPR 5)Lean Manufacturing Competitiveness for MSME 6) Design Clinique for Design Expertise to Manufacturing Sector 7) Marketing Assistance & Technology Up gradation 8) promotion of Information & Communication Technology ICT in MSME Sector9)Credit Linked Capital Subsidy Tech Upgradation 10) ISO 9000-14001 Certifi atio Rei urse e t……… ) perfor a e & redit rati g y NSIC
Key Policy Initiatives by the
Government
Make in Maharashtra
6
Maharashtra: Industrial Policy Progressive policies aimed at increasing the ‘competitive advantage’ of businesses
─ VAT + CST Abatement
─ Stamp Duty Exemption
─ Electricity Duty Exemption
─ Plus, a host of other benefits…
Fis
cal
Su
pp
ort
─ Skill Development
─ Single Window Clearance (SWC)
─ Investor Facilitation
─ Investor After Care Cell
No
n-F
iscal
Su
pp
ort
Mega and Ultra Mega project can qualify for
fiscal incentives up to 100% of the fixed
capital investment
Special Incentives
10% additional incentive is provided
by the state if the project creates double the
employment required for the eligibility
7
Maharashtra: Industrial Policy MSMEs
Special Incentives for MSMEs
Threshold limits for classification of
MSME Units
8
Maharashtra: Industrial Policy MSMEs
─ Effective implementation of State and Central Cluster Scheme: MSICDP & MSECDP
─ Provide critical infrastructure in MSME area
─ Define consumption limits exempt micro and small industries from getting water quota permission and delegation of powers
─ Exploring the possibility of Exemption of MSMEs and Factories from the purview of Mathadi Act
─ MSME should have separate regime and policy with simplified Government approach and procedures
─ Special emphasis for pre and post production procedures for simplification
─ Labour approach
─ Land allotment
─ Pollution NOCs
─ Inspection
─ Annual Return and Compliance
─ Need to cut down count of compliances by way of exemption to MSMEs
─ Promoting preferential treatment and benefits to MSME for ease of regulation
─ Implementation of incentives scheme to MSMEs
─ Grievance redressal and facilitation centre for MSMEs at regional levels: Regional MAITRI
9
Maharashtra: IT/ ITeS Policy Progressive policies aimed at increasing the ‘competitive advantage’ of businesses
─ Stamp duty exemption
─ Electricity duty exemption
─ Power tariff subsidy for up to 3 yrs.
─ Property tax at par with residential areas
─ Entry tax exemption for registered units
─ Works contract tax charged at minimum rates
─ VAT on sale of IT products charged at minimal rates
Fis
cal
Su
pp
ort
─ IT/ITES units will be allowed to be
set up in any zone
─ IT/ITES industry will be permitted
to work 24x7x365 without any
close down
No
n-F
iscal S
up
po
rt
- Up to 200% of additional FSI
- Promotion of Integrated IT Township
- Rationalization of services
classification
Special Incentives
- Special incentives to promote AVGC
sector in the state
- Special incentives for setting up BPO’s in rural areas
Top IT Companies in the state
10
Maharashtra: Retail Policy (Proposed) Progressive policies aimed at increasing the ‘competitive advantage’ of businesses
─ Facilitation through MAITRI
─ Relaxation of shops & establishment act
─ DCR to earmark and specify space allotted
for retail and entertainment
─ Retailers to be allowed to issue bills (tax
invoices) to the consumer in an electronic
mode
─ Skill development
─ Rationalization of power tariffs
─ Store Sign Board shall not be subject to prior permission and charges/fees
─ Relaxation of stock limit
─ Exemption from APMC/Mandi Act
─ Distribution Centre/ Warehouses shall be allowed to purchase land under BTAL act
─ State to exempt retail enterprise from
provision under section 22 of Mathadi Act
─ Food and grocery Business Retail shall be
included under Maharashtra essential
Services Maintenance Act
Key
Hig
hlig
hts
69%
8%
6%
6% 2%
2% 1%
6%
Food & Grocery
Apparel
Jewellery
Consumerdurables & IT
Pharmacy
Furniture
Footwear
Others
Indian Retail Sector
11
3111.11
3761.9
4158.73
4952.38
6079.37
6158.73
0 2000 4000 6000 8000
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Maharashtra Textile Industries output (in USD million)
- Out of 18,709 Industrial projects approved from Aug
1991 to Oct 2014, 10.6% belongs to textile sector
- State has 1,981 approved projects with investment of
USD 7809.84 Million
- MIDC has developed 8 exclusive textile parks
- More that 2,000 textile industries in the state with
fixed capital of USD 2417 millions
- State has signed memorandums of understanding
(MoU) of worth USD 2960 million with major
investments from textile sector
Textile Policy
Key Industrial Players
Equity support for new spinning mills in Vidarbha, Marathwada and North Maharashtra
10% capital subsidy for new project in Vidarbha, Marathwada and North Maharashtra
7 % interest subsidy for all new projects
Interest subsidy on long term loan linked to centrally sponsored Technology Upgradation Fund Scheme for New Textile project as well as modernization/ expansion/rehabilitation projects
Maharashtra: Textile Policy
12
Maharashtra Industry, Trade and Investment Facilitation cell