The Hindu Business Line : `Diversify exports of castings to US, Canada'

Eighteen business delegates from US and Canada have arrived in city to participate in a three-day Indo-Nafta Castings Meet organised by the Engineering Export Promotion Council (EEPC).

Talking to Business Line, Mr Rakesh Shah, all India Vice-Chairman of the council said the objective of the meet was to further diversify Indian exports of castings to the US and Canada. They already account for close to 11 per cent of India's engineering items export basket to these countries.

Indian engineering exports, which were $10 million (around Rs 45.25 crore) in 1956-57 have reached a level of over $6.5 billion (around Rs 29,412 crore) in 2002-03.

Earlier, in his keynote address, he said the Indian castings industry, accounting for 7.5 million tonnes of installed capacity, had gone through quality upgradation and that more than 300 `casters' have achieved ISO 9000 certification. A few casters for automobiles have already bagged QS 9000.

Mr Shah said the participants from US and Canada should also be able to feel the inherent potential of the Indian castings industry for furthering trade cooperation in mutuality of interest.

He urged the visiting US delegates the need for lobbying with their legislators in the matter of Non Tariff Barriers (NTBs), especially the "Buy American Act", which discouraged US importers from using foreign products or services that were commercially beneficial to the American industry.

Citing US and India as two great democracies, Mr Shah said this was characterised not only by growing trade between the two sides, "but many US MNCs are increasingly entering into joint ventures with Indian companies".

On the issue of NTBs, he said out of the 25 or so items exported by India to the US, some 19 were subjected to NTBs. "We are not even America's largest trading partner in terms of turnover, as we are 20th in the pecking order." Some of the major NTBs, he felt, pertained to customs user fees under the head of "Merchandise Processing Fee", which is levied on all imported merchandise, barring a few exceptions.

Another measure that has given a black eye to third country exports, according to him, was the collection of harbour maintenance tax, levied in all US ports on ex-sea imports into the US.

According to Mr R.P. Sehgal, regional chairman of EEPC, the Buy American Act was actually standing in the way of free flow of trade in the castings sector.

Sharing his knowledge of the Nafta markets, Mr G.D. Shah, former chairman of the council, said global outsourcing has now become an absolute necessity if one has to remain competitive in international markets, and restrictions on foreign trade were now a thing of the past. Pointing out that most of the foundries in the US and Canada were now virtually non-existent, because of their polluting nature, he said joint ventures could be set up in India for mutual advantage by re-locating some of these equipment. He also urged the US and Canadian buyers to bring in technology, when thinking of joint ventures.

More Stories on : Bearings | tings & Forgings | Other States | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page