www.thedollarbusiness.com
Vol.3
Issue 06
June 2016
100
$2
EXCLUSIVE INSIDE BHARAT SALHOTRA Managing Director, Alstom India R. K. DALMIA CFO, Century Textiles & Industries; Chairman, TEXPROCIL SUDHIR HASIJA Chairman, Karbonn Mobiles MAHESH GUPTA CMD, Kent RO Systems NAVIN CHAWLA Chief Operating Officer, Lava International RAJIV BHUSHAN TIWARI Chief Commissioner of Customs, Bengaluru ...AND MORE!
Of the many free trade agreements that India has signed till date, most have won it more 'friendship' and less 'precious forex'. Has the world's largest democracy simply chosen to risk its trade deficit for the sake of foreign policy?
Senna leaves
Small herb, big idea!
A product that defies even a slowdown
Bedspreads
Exporting comfort for a fortune...
India dominates global supply. Wonder why?
Diammonium phosphate
Chemically made, naturally profitable Import idea born out of an obsolete policy
Volume: 3 Issue: 06 June 2016 www.thedollarbusiness.com facebook.com/tdbIndia twitter.com/TheDollarBiz in.linkedin.com/in/thedollarbusiness/ President (VMPL) & Editor-in-Chief
: Steven Philip Warner
EDITORIAL & RESEARCH Editor Executive Editor Associate Editor (Print) Associate Editor (Online) Sr. Assistant Editors (Print) Assistant Editors (Print)
: Manish K. Pandey : Indranil Das : Andres M. Molier : Sheela Mamidenna : Sisir Kumar Pradhan, : Neha Dewan, Ahmad Shariq Khan, Sairaj Iyer Assistant Editors (Online) : N. Sharath Chowdary, Aamir Hussain Kaki Principal Correspondent : Deepak Kumar Correspondents : Aadhira Anandh M., Jasleen Kaur, Pooja Jain EDITORIAL CONSULTING BOARD Founder & Editor : Anil Goyal Publisher : Avnish Goyal Chief Consulting Editor : Dr. A. K. Sengupta Editorial Advisors : Dr. N.K. Goyal (CMAI), Atul Kumar Saxena (IIA) ADVERTISEMENT SALES & MARKETING Vice-President : Aninda Mondal Associate Vice-President : Lalit Seth Manager : Santosh Pandey, Vipul Singhal Executive : Maleeha Mushtaq International Representatives Seoul (South Korea) London (UK)
: Justin Yoon (+82-2-6241-4256) : S. Puri (+44 207 376 1996)
ART & PHOTOGRAPHY Art Director Senior Designer Designer Photographer
: Sujesh Kumar G. : Shaik. Masthan Vali : Gopal Ganesh Reddy : Dileep Kumar
THE DOLLAR BUSINESS ONLINE Sr. Web Developer : P. Surendra Babu SEO Manager : Sangameshwar Soma SEO Specialist : Praveen Kukunarapu Asst. Mgr. (Data & Metrics) : C. Dileep Reddy Associates (Data & Metrics) : Dinesh Reddy, Bhanu Prasad CIRCULATION, SUBSCRIPTION & DISTRIBUTION General Manager : S. S. Sudesh Manager - Subscription : M. Vinay Kumar Assistant Managers : Sanjeev Jain, Buddhi Sagar Pandey, Rajneesh Laroiya HR, FINANCE & LOGISTICS Sr. Manager – HR Manager – Accounts Asstt. Manager Sr. Executives Associate
: Rasanpreet Kaur : Parchuri Jhansi : Helen Mary : Swati Sharma, Ganesh Alagonda : Inderkant Padampalle
PRINTER Kala Jyothi Process Pvt. Ltd., 1-1-60/5, RTC Cross Road, Musheerabad, Hyderabad, Telangana 500020, IN PUBLISHED AT 5-2-198/4, Distillery Road, Ranigunj, Secunderabad, Telangana 500003, IN
© Copyright 2016 No part of this magazine may be reproduced in whole or in part without an expressed permission of the publisher. The information on this magazine is for information purpose only. Manish K. Pandey, Editor, The Dollar Business, is responsible for the selection of news and content under PRB Act. Vimbri Media Pvt. Ltd. assumes no liability or responsibility for any inaccurate, delayed or incomplete information, or for any actions taken in reliance thereon. The information contained about each individual, event or organisation has been provided by such individual, event organisers or organisation without verification by us. All disputes are subject to exclusive jurisdiction of competent courts and forums in Hyderabad, Telangana. Printed and published by Avnish Goyal for Vimbri Media Pvt. Ltd. Published at 5-2-198/4, Distillery Road, Ranigunj, Secunderabad - 500 003, Telangana. Printed at: Kala Jyothi Process Pvt. Ltd., 1-1-60/5, RTC Cross Roads, Musheerabad, Hyderabad - 500 020, Telangana. FOR EDITORIAL/CONTENT Email: editorial@thedollarbusiness.com FOR ADVERTISEMENT Email: ads@thedollarbusiness.com FOR SUBSCRIPTION Email: subscription@thedollarbusiness.com . +91-40-67609999 For queries / comments you can send us an SMS at +91-888-633-1947
8 THE DOLLAR BUSINESS II JUNE 2016
IS INDIA ON THE RIGHT TRACK? Of the many free trade agreements (FTAs) that India has signed till date, most have won more ‘friendship’ and less ‘precious forex’. Several trade experts and economists share similar opinions. Has India’s FTA experience been in most parts a case of ‘trial and error’ gone wrong? Or has the world’s largest democracy simply chosen to put to risk its trade deficit for the sake of foreign policy? The Dollar Business analyses...
82
BHARAT SALHOTRA
RAJAN MALHOTRA
56
90
MAHESH GUPTA
RAJEEV MISHRA
Managing Director, Alstom India
32 COVER STORY
FREE TRADE AGREEMENTS:
76
28
TAUFIK RIGO
FIRST SECRETARY – ECONOMIC AFFAIRS, EMBASSY OF THE REPUBLIC OF INDONESIA Speaks about the need for a more cohesive trade cooperation between India and Indonesia
10
INBOX
LETTERS TO THE EDITOR
Readers’ feedback, criticism, and appreciation that hit our mailboxes in May 2016
12
MONOLOGUE
20
52
PEOPLE SPEAK
From Arun Jaitley on the GST Bill to Barack Obama on America’s role in the TPP, and more...
14
26
GLOBAL TRADE
The growing trade deficit in UK; trade relations between Malaysia and Iran, EU-Mercosur beef trade and more..
SPOTLIGHT
INDONESIA The largest Southeast Asian economy is rich in natural resources
64
POLICY FOCUS
84
DOCKYARD
92
TDB FORUM
94
DATEBOOK
THE MIDAS TOUCH BEDSPREAD
SENNA LEAVES
India is the largest exporter, but there is need for value addition
70
78
DI-AMMONIUM PHOSPHATE
SECRET INGREDIENT
SPECIAL FEATURE MOBILE PHONES
DIRECTOR, UM INDIA On the growth of niche motorcycles’ segment in India
ingly looking at making in India
BESTSELLER
Why exporting bedspreads from India makes for a profitable business
INDIA TRADE
From the Chabahar agreement between India, Iran and Afghanistan to India-Oman defence cooperation and much more..
CMD, KENT RO SYSTEMS Reveals his company’s export plans for the Middle East
A policy conundrum helps importers but not producers
58
Chairman, Project Exports Promotion Council (PEPC)
IEIS DGFT has relaxed norms, but is it too little and too late to stem the decline in exports?
ICD WHITEFIELD It’s one of India’s premier ICDs and successfully serves the EXIM fraternity of the South
Questions about foreign trade that hit our mail box in May 2016
Some trade shows you shouldn’t miss out in India and abroad in June and July 2016
Mobile manufacturers are increasJUNE 2016 II THE DOLLAR BUSINESS 9
COVER STORY
FREE TRADE AGREEMENTS
FREE TRADE AGREEMENTS:
IS INDIA ON THE RIGHT TRACK? India has always been running about with bells on, when it comes to free trade agreements (FTAs), ever since the literal collapse of the WTO Doha Round. However, of the FTAs that it has signed till date, most have won more 'friendship' and less 'precious forex'. Several trade experts and economists share similar opinions. Has India's FTA experience been in most parts a case of 'trial and error' gone wrong? And despite having seen the little gains from these agreements, is India still backing the wrong horses when it comes to choosing FTA partners? Or has the world's largest democracy simply chosen to put to risk its trade deficit for the sake of foreign policy? The Dollar Business analyses... THE DOLLAR BUSINESS INTELLIGENCE UNIT
32 THE DOLLAR BUSINESS II JUNE 2016
JUNE 2016 II THE DOLLAR BUSINESS 33
Subscribe to read the full magazine