FIEO President Ramu Deora puts in Papers One Year before End of Tenure

Gives in to Desire for Younger Element to take Over FIEO Flag

In an emotional farewell to follow exporters, FIEO President Ramu Deora threw in the towel one year before the end of his term in 2013. He was re-elected to the managing committee two weeks ago in a closely contested three cornered contest which took a toll on his frayed nerves. He has left the office of the President to make way for younger element. The new President will be elected in the AGM due on 7 January. (The Deora family seems to be in a retiring mood these days, the elder Murli Deora who was Minister for Petroleum and Natural Gas resigned recently in favour of his son Milind Deora who is now MoS in Telecomm Ministry) The text of Deora’s farewell letter:

As you are aware that I took the charge as President of the Federation on 22^nd December, 2010. This was my fourth term as President of FIEO of Two Years each. I was earlier also the President from 1987 to 1991 and then from 1997 to 1999. It was my privilege to serve this Federation as President for the fourth term after great persuasion by seniors.

After completing my first year tenure only as President, I am relinquishing the office at the 46th AGM of FIEO so that youngster can chip in bringing new ideas and dynamism to this apex organization by restructuring the functions with their own independent mind. I am sure, young generation will bring innovative ideas to carry forward this organization to a greater height to meet the expectation of young entrepreneurs in International Trade.

I take this opportunity to express my sincere thanks to all Members of the Managing Committee and my Exporter Colleagues for their wholehearted support, cooperation and valuable guidance without which it could not be possible for me to discharge my responsibilities to the satisfaction of exporting community.

Friends, during my tenure I tried my best to take up issues of exporters- may be concerning Direct Taxation; Indirect Taxation; Banking or infrastructural or Trade Policy related – with the Government at highest level, and I am happy to say that those were given due consideration and many of them were favourably considered by the Government in the larger interest of the exporters. I convey my sincere thanks to the Government particularly to Shri Pranab Mukharjee, Hon’ble Finance Minister and Shri Anand Sharma, Hon’ble Commerce & Industry and Textile Minister and their dynamic officers.

Government fixed Export Target of USD 200 Billon for 2010-2011 but was not sure to achieve it. However, I announced in December, 2010 that it will cross USD 220 billion by encouraging us to increase the export by making Bharat Darshan. The final figure was more encouraging as it achieved USD 246 billion. Encouraged with this, I fixed the target of USD 537 billion for 2014-15 against the Government Target of USD 400 billion, which was later revised to USD 500 billion. However, I forecasted that the Trade Deficit may swell to over USD 150 billion during this year and the same is coming true. Therefore, Government should provide level playing field to the domestic manufacturing sector so that it can compete with imports and help us in reducing Trade Deficit by arresting depreciation of Rupees around more than 21% against China appreciation of 4.7%.

The sharp fluctuation in the exchange rate has not really benefitted the export sector. On the contrary, cost of inputs, freight, fuel, have gone up with hike in import. Government should ensure that high volatility in exchange rate is curbed and rupee move freely within a narrow band like China and other Countries.

When India’s Foreign Trade was at infant stage, I played a crucial role by traveling tirelessly in India & abroad with Exporters and brought several benefits to Exporters particularly Exemption of 100% Export Profit from Income Tax under Section 80HHC. Acquired Ownership Land at Vasant Vihar, New Delhi to build Niryat Bhavan, office at Kolkata, Chennai with 100% own funded of Exporters without any Government grant and at Mumbai at World Trade Centre.

Some of the achievements during the year are as under:

• Interest Subvention of 2% Restored from the Retrospective date of 01.04.2011.

• DEPB is extended for another Six Months until 30th September, 2011.

• Smooth transaction of DEPB to All Industries Rate of Duty Drawback with very good rate and directly credit to Exporters A/c in the Bank without any Hassle, Paper, Documents and Transaction Cost.

• Finance Ministry and Commerce Ministry had best understanding between them. Result – Announced substantial Reforms, Simplification etc. in ‘Fiscal Policy and Trade Policy’ to reduce Substantial Transaction Cost.

• To remove License and Quota System in various commodities like Cotton, Yarn etc.

• Duty Credit @1% of FOB Value of exports to Engineering, Pharmaceutical & Chemical Sectors under Special Bonus Benefit Scheme.

• Additional 1% Duty Credit for exports made to the specified markets in Latin American, African & CIS Countries under Special Focus Market Scheme.

• Duty Credit @ 2% of FOB value of exports for exports of Apparels (RMG) under Chapter 61 & 62 to USA & Europe during 1st April, 2011 to 31st March, 2012.

• 130 Additional items in the Sector of Chemical/Pharma, Textiles, Handicrafts, Engineering & Electronic Sectors for benefit under Focus Product Scheme.

• Service Tax refund for exporters on all industry basis through automated route with direct crediting to exporters’ account.

• Exports of Agricultural Tractors > 1800 cc capacity, Sugar Machinery and High Pressure Boilers made to the specified countries now eligible for 2% Duty Credit Scrip under Market Linked Focus Product Scheme.

• To get PCFC in Foreign Exchange convincing RBI to provide at Libor (+) 3.5% including Buyers Credit.

• Increase in Membership of Status Holders from 2262 in 2009-10 to 2457 in 2010-11.

• Substantial increase in membership growth of FIEO from 12925 in 2009-10 to 13669 in 2010-11.

• To get update electronic data of FIEO Members correctly so that Electronic (web based) voting system for Election in FIEO could be introduced from 2011-12 onwards. It will reduce substantial cost of Federation which presently incurred on printing and mailing of ballots to electorates.

Friends, your valuable inputs and suggestions from time to time helped me as well as to the Federation in serving the exporting community more effectively. I am grateful to every one of you for your valuable contribution towards its growth.

It is a matter of great pride for all of us that despite the difficult economic situation in our traditional markets, the country’s exports registered a robust annual growth of 37.5 per cent to US $ 245.9 billion. In 2010-11 while trade deficit fell to US $ 104.8 billion, further corroborating the forecast made by FIEO in January, 2011 that we will cross US $ 225 billion mark by the end of 2010-11. This may not have yielded the desired results had it not been exporters entrepreneur skill coupled with risk taking capability.

It was also the India’s economic integration with the rest of the world that has resulted in such exponential growth in exports. I compliment you and thank the Government’s diversification strategy supported by regional trading agreements. The high growth achieved in 2010-11 prompted the Government to revise the target for 2013-14 from US $ 450 billion to US $ 500 billion.

However, looking at the emerging challenges at the global level coupled with constraints of domestic economy achieving compound annual growth rate of 26.7% to achieve US $ 312 billion by 2011-12 is not an easy task particularly when the sword of Damocies is hanging on exporters’ head. Eurozone crisis should be opportunity and challenge to us to upgrade our technology and productivity.

I would like to record my special thanks to the Vice President Mr. J K Jain, Director General & CEO, Mr. Ajay Sahai; for the excellent support they provided me in all my endeavors.

I can’t forget support and highlights by media and TV Channels to air our views through their news to Government which always resulted effectively.

It was a privilege to work with you and I will always cherish the close association I have had with this large fraternity of exporters and decision-makers in the different States and the Centre.

No organization can progress, or even function efficiently, without the support of dedicated officers and staff. FIEO has been fortunate in having a committed workforce which has enabled it to serve the exporting community to the optimum, and built it up as a national institution.

I assure you my all support and guidance in future also. I am always available for promotion of International Trade which is close to my heart and you can always contact me at my office address given at the bottom of the letter.