The document summarizes comments from FICCI (Federation of Indian Chambers of Commerce and Industry) on various economic issues in India: 1) FICCI welcomes the new foreign trade policy 2015-2020 and comments that it provides a roadmap to increase exports, employment, and ease of doing business. 2) FICCI expresses concern over falling exports in March 2015 and calls for steps to reverse the trend. 3) FICCI comments that while manufacturing growth was positive in 2014-2015, challenges like interest rates and infrastructure need addressing for continued growth. 4) FICCI signs a cooperation agreement with Turkey to establish forums to promote trade and investment between the two countries.

1. • FICCI WELCOMES NEW FOREIGN TRADE POLICY DOCUMENT
Welcoming the new foreign trade policy 2015-2020, FICCI said that we compliment the Commerce &
Industry Minister for announcing a fresh, innovative package of trade policy measures providing a
roadmap that would step up our export of goods & services, create additional employment opportunities,
improve the ease of doing business, increase domestic value addition, support India’s greater
participation in global value chains, and achieve diversification of export markets as well as incentivization
of technology-intensive products. The policy is nicely calibrated to attain closer integration with the global
market and mainstreaming of states & union territories in the trade policy making process, while at the
same time measures have been put in place to forge effective linkage with important initiatives such as
Make in India and Digital India.
FICCI is very happy to see several of its suggestions made in the run-up to the policy, have been accepted
and adopted. Concerted and partnership-based efforts of Government and business would certainly be
able to raise India’s share in world exports from the present level of 2% to 3.5% by
2019-20. It is encouraging to see the consolidation of a number of export incentive schemes in two - one
for merchandise exports and another for export of services. “It is important to note that the streamlined
and consolidated schemes will have no conditionality attached and the duty credit scrips would be fully
transferable. It will be particularly useful for the exporters of services.
• FICCI COMMENTS ON TRADE DATA FOR MARCH 2015
Commenting on the trade data for March 2015, FICCI expressed concern on the falling trend in India’s
exports. Double-digit decline in exports for three consecutive months is a cause of worry. However with
improved sentiment and Make in India initiative we have to reverse this trend.
A large number of sectors have witnessed decline in exports in March this year and they include important
products such as tea, cereals, marine products, meat & dairy, oil meals, fruits & vegetables, iron ore &
coal & other minerals, leather, chemicals, pharmaceuticals, gems & jewellery, engineering goods, cotton
yarn, man-made yarn & fabrics, handicrafts, petroleum products, plastic and electronic goods. India’s
trade deficit widened in March to the highest in last four months and despite a marginal decline in our
imports bill for the full year, merchandize trade deficit has moved up to $137 billion in 2014-15 from
$135.8 billion.
• FICCI COMMENTS ON IIP DATA FOR MARCH 2015
While it is reassuring to see the positive growth in manufacturing for 2014-15, but the growth remains
tepid. Critical constraints for the sector like high interest rates, infrastructure bottlenecks, low domestic
and export demand are an area of concerns for the sector and may continue to impact the growth of the
MAY 2015

2. sector in coming months said FICCI. However, the overall business confidence has improved in the last
few months and we are hopeful that steps taken by the Government would yield benefits.
• REDUCTION IN REPO RATES NOT ADEQUATE TO STIMULATE INVESTMENT IN MANUFACTURING:
FICCI SURVEY
FICCI’s latest Quarterly Survey on Manufacturing projects a better outlook for the sector in Quarter four
of 2014-15 as compared to the previous quarter (Q-3). The outlook for Q-4 of 2014-15, as per the latest
survey, is more optimistic than it was in Q-3 of 2014-15 for the manufacturing sector as proportion of
respondents expecting higher production vis-à-vis last year has improved to 52% in Q-4 from 50% in Q-3.
However, the survey was slightly cautious also as respondents anticipating negative growth have also
increased to 18% in Q4 2014-15 from only 11% in Q-3 2014-15. With eleven out of thirteen sectors
expected to show improvement in production the outlook seems to be better than the last quarter, noted
the FICCI Survey. Some sectors may experience only a moderate improvement in growth, according to the
survey. Though the outlook turned bleak for the sector in the last quarter (Q-3) as evident form the table
below, but the latest survey indicates that the perhaps the worst is over for the sector and revival is on
the anvil.
FICCI’s latest quarterly survey gauges the expectations of manufacturers for Q-4 (January – March 2014-
15) for thirteen major sectors namely textiles, capital goods, metals, chemicals, cement and ceramics,
electronics, auto components, leather & footwear, machine tools, Food & FMCG, tyre, paper and textiles
machinery. Responses have been drawn from 272 manufacturing units from both large and SME segments
with a combined annual turnover of over Rs 4 lakh crore.
• FICCI COMMENTS ON THE LAUNCH OF MUDRA BANK BY PM MODI
Complementing the launch of MUDRA Bank by Hon’ble Prime Minister FICCI said that we welcome setting
up of MUDRA Bank as it is a great step forward in providing the much needed financial access and support
to the small and medium enterprises. This will go a long way in stimulating the growth of MSMEs which is
crucial for large scale job creation and accelerating GDP growth. A dedicated institutional finance system
has been the need of the hour to energize the entrepreneurial spirit of the nation. With MUDRA Bank
envisaged as the nodal financing agency as well as the regulator of Micro Finance Institutions, we hope
that financial stress of MSMEs will now be alleviated.
• MUFG’S BANKING ARM, THE BANK OF TOKYO-MITSUBISHI UFJ LTD. TO PLEDGE INR 105
MILLION TOWARDS THE SWACHH BHARAT-SWACHH VIDYALAYA CAMPAIGN IN ANDHRA
PRADESH
The Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU), the banking entity of Mitsubishi UFJ Financial Group
(MUFG) has signed a Memorandum of Understanding (MoU) with Federation of Indian Chambers of
Commerce and Industry’s Socio Economic Development Foundation (FICCI-SEDF), with the aim of
collaborating in the building of sanitation facilities in girls’ schools of Andhra Pradesh and its adjoining
areas.
Under this MoU, BTMU has pledged INR 105 million to fund the construction of sanitation facilities in
about 200 girls’ schools in Andhra Pradesh under the Swachh Bharat-Swachh Vidyalaya campaign. Part
of the donation will also be used to fund awareness programs to inculcate the importance of having

3. proper and safe sanitation for school-going children, especially girls. FICCI-SEDF will be BTMU’s partner
and administrator of this sanitation project.
FICCI is pleased to partner with BTMU in their sanitation program in Andhra Pradesh. FICCI strongly
believes that by providing basic sanitation facilities that offer good hygiene and privacy, more girls may
be encouraged to stay in school and complete their studies. Good hygiene habits inculcated from young
age will also help to improve the overall health of India’s youth. This will eventually lead to having a
healthy and strong workforce.
• IPR MUST BE AT THE FOREFRONT FOR SUCCESS OF PM’S CALL FOR ‘MAKE IN INDIA’
FICCI said that there was now a growing realization that intellectual property and related rights played an
important role in strengthening businesses and most enterprises valued their IP as much as they valued
their market presence. FICCI said that the ‘Make in India’ campaign, in addition to emphasizing on FDI, tax
and market entry reforms; must also work towards establishing a vibrant IP regime in the country.
Speaking about the IPR Policy, FICCI said that industry was encouraged by the recommendations set forth
in the draft IPR Policy. We hope that these initiatives would eventually lead to an improved IP ecosystem
which would encourage innovation in the country and would give a push to the ‘Make in India’ campaign.
• FICCI JOINS HANDS WITH GOVT OF INDIA TO EXTEND RELIEF TO NEPAL
FICCI has joined hands with Government of India to extend relief and rehabilitation to disaster struck
Nepal. We have already got an overwhelming response from our members. President FICCI, Dr. Jyotsna
Suri has committed to provide perennial water supply and about 5000 bottles are being arranged to be
despatched. Further, 2000 plus tents, blankets, baby food, and OTC drugs are being supplied by our
members which will be despatched to disaster site in coordination with Government. Apart from this we
have also despatched huge quantity of Tarpaulins which is on top of the priority items suggested by Indian
High Commission in Nepal.
• ‘INDIA AVIATION 2016’
FICCI said that India has a vision of becoming the third largest aviation market by 2020 and some notable
measures have been undertaken by the government such as the restoration of India's aviation safety
rating to Category-I by US Federal Aviation Administration and drafting the civil aviation policy which is
aimed at making civil aviation a vibrant sector. However, some issues faced by the sector like mounting
debt burden of the airlines, congestion at airports and high taxation need to be addressed. India Aviation
2016 would prove to be an ideal platform to showcase the possibilities of this growing sector.
• INDUSTRY TO IMPROVE PRODUCT STANDARDS & SERVICES DELIVERY TO REMAIN COMPETITIVE
IN GLOBAL MARKET POST TRANS PACIFIC PARTNERSHIP AGREEMENT
The Foreign Trade Policy 2015-2020 has addressed the issues on mega-regionals and their implications
for India. Mega-regionals are perceived as a natural progression of major trading players’ ambitions. These
deals have the potential of significantly redefining the global trade architecture. It is widely felt that India
must recognize the emerging challenges from the mega agreements currently under negotiation, and start
preparing right away.

4. FICCI said that it was time for industry to do the preparatory work in order to deal with the challenges
which would emerge once these pacts were implemented and raise the standard of products and services
to remain competitive in the global market. Recalling Prime Minister Mr. Narendra Modi’s campaign
‘Make in India’, FICCI added that industry must focus on producing ‘Zero defect, Zero effect’ products to
maintain its share in the global market.
• PROVIDING STABLE & PREDICTABLE POLICY REGIME FOR INVESTMENT IN HYDROCARBON
SECTOR
FICCI said that the government needs to put in place an enabling environment which would enthuse the
national oil companies and private sector, to explore resources within our borders and getting a fair and
transparent price for venturing into this high risk sector. At present the sector is beset with infirmities in
regulatory and fiscal regime and lack of a single window clearance which was hampering the ease of doing
business in this important sector of the economy. The discriminatory tax regime between oil and gas also
needed to be addressed to balance the risk-reward framework for the operator.
FICCI highlighted the need for a concentrated strategy to unleash the domestic E&P potential, so that the
maximum of energy resources from within the basins could be exploited. This will not only make India
self-sufficient in energy and save precious foreign exchange, it would help in arresting the burgeoning
current account deficit and create employment opportunities in the economy.
• COMMON ECONOMIC STRATEGY ON THE ANVIL TO BOOST INTRA-BRICS TRADE
FICCI said that one of the fundamental contribution or rather achievement of BRICS grouping is its
demonstrated capacity to set up global institutions. The New Development Bank, is a significant step
forward in our mutual cooperation. The governance structure in the New Development Bank will be
equitable and all partner countries will be able to leverage resources to finance infrastructure and
sustainable projects in their countries as per their own development priorities.
• MARKET POTENTIALS AND BUSINESS APPLICATIONS FOR RENEWABLE ENERGY AND
ENERGY EFFICIENCY IN INDIA AT HANNOVER MESSE
FICCI said that it is an opportune moment for us to discuss the renewable energy opportunity in Hannover
as Hannover represents Germany’s innovation and manufacturing excellence and it coincides very well
with India’s thrust on Make in India where we will need to look at excellence in manufacturing to enhance
our competitiveness at home and globally. We believe Germany can help shape the ecosystem for
renewable energy in India, an ecosystem that needs skill development, research and development, testing
facilities, supply chain for manufacturing, and all this Germany is very well positioned to offer.
The Indo-German Energy Forum has several ongoing initiatives in India with the Indian Ministry of New
and Renewable Energy. Among these are the Renewable Energy Supply in Rural Areas (RESRA), TRIGEN,
Solar Data Mapping and Monitoring (SOLMAP), Commercialization of Solar Energy in Urban And Industrial
Areas (COMSOLAR), Integration of Renewable Energy into the Indian electricity system (I-RE). Renewables
in India is meeting an unmet demand unlike in other countries where renewables is replacing other
sources of energy generation.

5. • STATES TO AMEND AGRICULTURAL PRODUCE MARKET COMMITTEE ACT
FICCI said that maize holds a place of importance in both agriculture and food processing hence it was
necessary to enhance its production considerably and the Public Private Partnership for Integrated
Agriculture Development (PPPIAD) programme has been a step in this direction. The programme helped
in directly connecting with the farmers, providing them with well-planned training and engaging them
actively to employ new technology and best practices to augment the production of maize. He added that
FICCI stands committed and supports the endeavor of making maize one of the core crops in the country.
• FICCI’S COMMENTS ON AFFIRMATION OF INDIA’S STABLE AND POSITIVE SOVEREIGN RATING
BY FITCH AND MOODY’S
The latest upgrade in India’s sovereign rating by the Moody’s and affirmation of stable rating by Fitch
reflects the improving outlook for Indian economy on the back of various reform measures taken by the
government towards simplification of regulatory regime, maintaining fiscal and external balances and
fostering a conducive business climate. As the government remains committed to the broad-based reform
agenda, reaching the ambitious milestones of growth, employment generation and improved livelihood
will not be difficult, said FICCI.
The new ratings will further uplift global investor sentiment and help in attracting greater foreign
investments across the board. To sustain investor interest, implementation remains the key. We hope
that the reform momentum shall continue with an emphasis on long-term socio economic development.
• 2-DAY ‘GLOBAL SANKALP SUMMIT 2015’ & ‘SOCIAL INNOVATION EXPO’ GIVES PLATFORM TO
CORPORATES AND SMALL BUSINESSES TO ENGAGE WITH GOVT.
FICCI said that the forum gave an opportunity to examine the problems of Indian’s at the bottom of the
pyramid and identify innovative solutions to resolve those issues. India was the home to frugal,
distributive and affordable innovation and it was time to scale up these innovations. Referring to the Expo,
FICCI said that over 100 innovative solutions were on display which proves that India has the capability
and the country just needed a conducive ecosystem to promote social entrepreneurs. Also the industry
will stand by the initiative and ensure that social innovation becomes the order of the day.
• FICCI BECOMES FOUNDING STRATEGIC PARTNER OF COMMONWEALTH ENTERPRISE AND
INVESTMENT COUNCIL (CWEIC)
The Federation of Indian Chambers of Commerce and Industry (FICCI), the largest and oldest apex business
organisation in India, has become a Founding Strategic Partner of the CWEIC, the apex organisation
representing private sector businesses within the Commonwealth and is the only institution with a remit
to promote intra-Commonwealth trade and investment. FICCI said that given India's role in leading the
Commonwealth and the synergies between the respective mandates of the two organisations, we are
keen to develop a strong working relationship to ensure our partnership can service the Indian business
community in a meaningful way.
FICCI has done pioneering work in promoting India’s engagement with Africa. The activities include
bilateral, regional, sectoral and pan-African initiatives. FICCI provides a powerful business platform for
Indian industry to forge links with their African counterparts.
•

6. • FICCI & TOBB SIGN COOPERATION AGREEMENT FOR ESTABLISHING INDIA-TURKEY WORKING
COMMITTEE AND INVESTMENT FORUMS
In a bid to give a fillip to B2B ties between India and Turkey, FICCI and Union of Chambers and Commodity
Exchanges of Turkey (TOBB) have signed a Cooperation Agreement for establishing India-Turkey Working
Committee to identify obstacles in trade and economic cooperation. The two organizations will also co-
host and organize ‘Investment Forums’ to promote investments opportunities both in India and Turkey.
FICCI stated that tourism held a lot of potential for the two nations as Turkey was one of the most favoured
destinations for Indian tourists. However, the flow of Turkish tourists to India was small owing to lack of
knowledge and information about this country. Hence, efforts should be made to promote India as a
tourist destination for Turkish travelers.
For more details contact FICCI Membership
at tripti.kataria@ficci.com