/24-7PressRelease.com/ - March 3, 2005 - 49-year old Mr. Rajender K. Goyal has been a pioneering name in the Indian logistics community and an icon for aspiring CHAs. His experience of 26 years in trade circles has earned him many accolades. Currently serving as the Chairman of TKWs, he is also the Treasurer (Hony) of DCCAA (Delhi Customs Clearing Agents Association) and an executive member of FFFAI (Federation of freight forwarders association of India).
A global market player himself, he has handled the maiden consignments of companies like HCL, HFCL, etc. to India. On the arrival of Budget-2005, he was on a thinking spree and came up with the following insights.
Q. Budget 2005, most people call it a rerun of dream budget 1997-98. What do you feel over the same, as the voice of trade community?
Ans. Chidambaram has to be appreciated for the fact that he has given something to everyone's kitty. Be it the capital markets through various reforms, industry boosters by reducing corporate tax or even common man by savings exemption scheme. However, if he'd ask a trade consultant - budget 2005 brings little to cheer for. Reforms that were promised last year, seem to have escaped the FM's thought-process yet overall economic and trade development shows encouraging signs.
Q. What are the salient features of Budget 2005, which may affect trade in the overall picture?
Ans. Primarily, expected revisions in duty structures and bringing down Peak customs duty from 20% to 15% and crude oil being altered to 5% from 10% earlier; should bring us closer to ASEAN duty structures. While the duties on IT-bound goods have been nullified; most products in the category are levied with a 4% additional duty.
To encourage the domestic assembling and manufacturing of IT/ Electronic/ Telecom products this 4% levy will be credited back against the excise payment. Thus, importing semi-processed goods may become order of the day.
Q. What did Economic Survey throw up? Does it bring any signs of encouragement?
Ans. Most definitely! I think it was more satisfying than the Budget for me, and I feel that PC complimented it well with 1.5 billion export targets for 2009. Double than current levels! Also, the emergence of China as our third largest trading partner (after US and UAE) overtaking UK shows the consolidation of South-East Asian nations. Yet, we couldn't avoid our trade deficit which is to be taken with a pinch of salt.
Q. Surprise Elements for Budget 2005?
Ans. Major Surprise and debatable change was the introduction of an anti-tax evasion measure, in form of 0.1% tax on Rs.10, 000/- worth cash withdrawal. It's a smart move, yet may pinch businessmen with frequent cash transactions.
A critical missout has been ITES sector which witnessed a record 18.2% growth -
Rs. 114650 crore in absolute terms; yet has no clarity over the tax regime it falls in. Maybe a more responsible action was expected on this front.
Q. On the domestic front, does logistics/ trade get liberalized or there is still some time before that?
Ans. On the contrary, domestic transportation got a major boost. Railways ministry definitely got bonus points by rationalizing and simplifying our rail freight structures. 4000 different categories of products have been short-down to 80; making it much easier for the industry. Similarly, great yet undetermined initiatives like Rs.10, 000 crore SPV (Special Purpose Vehicle) for port development can really lead to decongestion and hassle free movements.
Q. Following the Budget, do you foresee any steps taken by the trading community, to maximize their returns?
Ans. Firstly I see an increased entrepreneurial activity particularly in knowledge intensive businesses following the establishment of SME fund and SME development bill particularly aimed at Pharma, Biotech and IT sectors. The belief is further strengthened by the commitment to the sector displayed in PCs speech by encouraging imports of biotechnology equipment.
There is also an interesting angle for Chinese manufacturers of tractors and mo-bikes, weighting to woo the Indian consumers. They can now get excise exemption if they import under CKD (Completely Knocked Down) and pay a duty of 15% a benefit which has not been given to their richer cousins in the automobile sector.
Q. Lastly, what extra do you think the government could have done? What can be expected from 2006?
Ans. To be honest, they have been generous to exporters' communities across textile, pharma, biotechnology, handlooms and almost all other sectors. There have been discussions over initiatives like alternates to Concor for managing container traffic et cetera as well. If these noble thoughts could be transformed to quick action, and old projects like linking of inland waterways (project initiated by the NDA-government) besides others can also be revived, this govt. its torch-bearers will truly lead our country to the vision of a developed nation.
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About the company:
TKWs, The Knowledge Workers is a KSO organisation involved in delivering knowledge intensive services through its resource pool of highly motivated knowledge workers with a mission of continuously acquiring, sharing and leveraging knowledge.
The organisation's recognition of knowledge as a factor of production is reflected in it's knowledge repositories which benefit its clients who include companies like HCL, HFCL, Data Access, Techspan, Etc. TKWs has a presence in 5 Indian cities and provides services in domains of International Logistics, Cyber Communications, Skill Development and System Integration.
We believe in KSO(Knowledge Services Outsourcing) and are the pioneers in International Logistics, Skills Development Services, Communication Services, Systems Integration and Financial Services.
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