The $2-billion non-tyre rubber sector is aiming to double its exports by 2025, in response to the All India Rubber Industries Association (AIRIA).
AIRIA president Sawar Dhanania mentioned the worldwide marketplace for rubber merchandise which is estimated at round $212 billion as we speak can be anticipated to develop by 2025. “Because MSMEs are so important to India’s economy and commerce, we believe that India’s free trade agreements (FTAs) should include provisions to address the special concerns, demands and barriers that MSMEs may face while doing business in foreign markets,” Dhanania mentioned at a gathering of the affiliation in Mumbai.
He mentioned the federal government ought to take steps to make sure that the phrases of the FTAs profit the MSMEs for internalisation, with commerce facilitation mainstreamed in MSME improvement objectives. “MSMEs can work world-wide by creating a level playing export infrastructure, improving their financing conditions, educating them about suitable marketing channels and facilitating their working with trading companies,” he mentioned.
Shashi Singh, senior vice chairman of AIRIA, mentioned, “Indian Institute of Foreign Trade (IIFT) and the export promotion councils should educate MSMEs on export procedures, documentation requirements, and the finer points of export.” “We expect IIFT and the EPCs should share export market intelligence and arrange specialist meets. It will be beneficial to individuals who are new to exports and wish to understand how to become export-ready,” Singh mentioned.
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“In the last 1-1.5 years, the government released Rs 55,000 crore under MEIS incentives as a reward. There are 13 trade agreements under which 12 are already implemented. Under India and the UAE agreement, 97% of Indian products exported get the direct benefit,” mentioned Ramesh Holiachi, Joint Director General of Foreign Trade.
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“The India and Australia agreement is yet to be notified by the Indian government. The Australian government has provided geo-duty concessions to India…. 91-97% of Indian products will get duty concession in the Australian market. Footwear, pharmaceuticals and textile industry in India will benefit from this agreement,” mentioned Holiachi.
AIRIA mentioned the rubber business has an enormous potential for exporters as India is a labour-intensive market. “Due to Covid-19 and Ukraine war crisis, there have been a host of problems like availability of raw materials, increase in shipping prices and challenges to the cash flow. India has the highest cost in logistics at 17-18 per cent,” AIRIA mentioned.
