Focus on One District One Product (ODOP) and Districts as Export Hubs (DEH) : FIEO

An interactive session was organized by the Federation of Indian Export Organisations (FIEO) Eastern Region, Kolkata office in line with the Government of India’s concept, objective and push for promoting ODOP and DEH at Hotel Lalit Great Eastern today. This capacity building session was customized for the Gem and Jewellery sector/cluster of Howrah District located at Ankurhati area with a view to apprise and encourage them about venturing into export trade and the steps, ways and means to how to go about it.

Speaking at the deliberations, Shri Yogesh Gupta, Regional Chairman, FIEO Eastern Region complimented the Government of India and the Ministries/Departments involved for conceiving the concepts of ODOP and DEH and the initiatives being taken nation-wide at various levels to make India not only a global manufacturing hub but to identify 1 product from each district and to achieve its export potentiality in the world market. Shri Gupta announced that FIEO is the nodal body and has been entrusted by the MoCI, GoI under the Market Access Initiative scheme to conduct such capacity building training sessions under OPOP and DEH pan India. While talking about West Bengal’s scenario and specifically the Gem and Jewellery sector, he mentioned that, our state historically has had a rich tradition of excellent craftsmanship and the largest number of skilled labour’s and goldsmith who are working throughout India. Gem & Jewellery happens to be one of the very promising and prominent sectors out of India’s all export products and contributes to around 12% of the country’s total exports.

The growth in this sector has been phenomenal in the post-covid period and exports have risen to almost 92% in March 2022 vis-à-vis March 2021, thereby achieving 90% of the total export target of 41.66 USD billion given by the MoCI in the FY 21-22. As for the current FY 22-23, the target is around 45 billion USD and exports figures as on Sept 2022, show that this sector has achieved around 20.58 billion USD which is indeed a very significant achievement. The Gold Jewellery products being made in our state has achieved an iconic status because of the design, craftsmanship and is fondly called as the ‘Kolkata Jewellery’. Besides, the export figures, craftsmanship etc, it is mention worthy that, more than 6 lakhs skilled labours are engaged in this sector in our state and hence, it’s high time for us to overcome the hindrances that remain and take things forward through proper strategy to channelize the talent and potentiality in the global market. He also spoke about the importance of branding in the international market for demand, marketability, affordability of any product.

Shri Pankaj Parekh, Chairman, Eastern Region, GJEPC mentioned that Howrah has been declared as the focus district for Gems and Jewellery for the immense potentiality it has shown and continues to carry and stakeholders, trade bodies are working to improve the overall situation and prospects when it comes to international trade and increasing exports. He added that from Hooghly and Midnapur districts are mostly engaged in the work of plain jewellery. While labourers from Domjur area (Howrah) are engaged in studded jewellery which is the highest in terms of value addition. Adding to what Shri Gupta spoke, he mentioned and sounded sceptical saying that though nearly 50% of the total export target for FY 22-23 has already been achieved in 6 months, however, the balance may not be achieved in the coming 6 months due to several concerns and challenges and uncertainties that do remain for this sector with regard to import of goods under concessional rate (IGCR); the recent trade agreement with UAE as well as the availment of duty drawback vis-à-vis upfront refund like GST/ITC all which encompasses the fluctuations in forex (USD) and price of gold which takes adverse impact from the Indian scenario. He informed that discussions/meetings have already taken place with the GoI/MoCI to eliminate some these difficulties. He encouraged the Ankurhati based entrepreneurs to come forward and take interest in export business while GJEPC through their various services and activities including focus on product and international events being held worldwide and having footfall of over 8,000 buyers should surely prove to be of some help.

Shri Ashok Bengani, President, Ankurhati Gems and Jewellery Manufacturers Welfare Association stated that the total number of exporters pan-India from this sector stands at only 700 while registered manufacturers, entrepreneurs stand at around 78,000 which means that not even 1% is exporting from India. He supported the views and thoughts expressed by Shri Gupta and Shri Parekh and taking a cue from them added that concerted efforts should be put in if we have to change the scenario rapidly and convincingly. He also thanked FIEO, Eastern Region for this event under ODOP to promote Howrah District as the Hub for the Gems and Jewellery sector which certainly has the force to grow and dominate Indian exports and the international market.

Dr. Gautam Dutta, Professor, Indian Institute of Foreign Trade, Kolkata explained to the participants about some of the basic tenets about export, import, ways and means for market identification and penetration. He apprised the entrepreneurs about basic documents like IEC and went on to add about the concept of ITC-HS Code and identifying markets at 6 digit and 8 digit code level. While conceiving and thinking about coming into the export markets, Dr. Dutta said that it is important to bear in mind not only facts and figures but equally important was studying and understanding any country – its economy & requirements as well as buyer’s tastes and preferences. He drew references from his personal experience in line with how to conceive and evolve on district wise focus on a single product to explore and reach a certain level of growth and potentiality. He also added that we must understand and realize from an individual entreprenuer’s as well as nation’s point of view on whether – Are we ready to export and going on to elaborate about – Comparative advantage and Competing countries by data analysis of India’s Exports vis-à-vis Global Imports as well as India’s market share in global trade for a particular sector i.e. Gems and Jewellery. He also added that, one of the major factors for selection/identification of new markets is by evaluating their gradual increase in imports along with the rate/percentage of the gradual growth in their export market. He also apprised the participants about export /product map which is to categorize and select global countries based on facts/figures and potentiality. Dr. Dutta also taught the traders from the Jewellery sector about how to find prospective buyers/importers from globally reputed sites and data being provided by UN/UCTAD.

Shri Pankaj Parekh added while analyzing and figuring out present markets and future countries of export, it is important for exporters to consider tariffs, trade barriers and trade agreements between nations. Shri Gupta agreed with these views and went on to add that unequivocal focus should be laid on product development, designing and how to promote domestic products of future potentiality which is the objective behind capacity building.

Shri Santosh Kumar, Chief Manager, Trade Finance Centre, Punjab National Bank mentioned that their Eastern belt is catering to states like West Bengal, Jharkhand and some N-E states also. He mentioned that though PNB is the Lead Banker in the Gems & Jewellery sector in Maharashtra, however, they are looking to have representation from this sector in Eastern India. He spoke briefly about their credit facilities like – pre and post shipment loans being granted which is 75% of order value and 100% against bills respectively. Ms. Preeti Jha of Punjab National Bank also spoke about lending to the MSME’s based duly considering on collaterals, export performance and overdue bills. She also informed the audience to take benefit of the bank’s Trade Finance Portal and Forex Portal. Shri Bengani proposed to look into the possibilities for providing land area/space at Ankurhati complex to PNB in their willingness to open a branch there.

Shri Yogesh Gupta gave the concluding remarks and thanked all delegates and participants. He further added that FIEO is extremely sincere and interested in taking this forward and will organize more such customized sessions in the near future.