BRCM COLLEGE OF BUSINESS ADMINISTRATION

LIBRARY ASSIGNMENT 2013-14

EXPORT MANAGEMENT-I

TYBBA- SEM-V

DIVISION-II [MARKETING]

TOPIC NAME- PROJECT REPORT ON STRUCTURE, ROLE AND CONTRIBUTION OF ELCTRONICS AND COMPUTER SOFTWARE COUNCIL OF INDIA

BY,

115- GANDHI SANI B.

136- MEHTA ROMIL K.

SUBMITTED ON -15TH OCTOMBER, 2013

SUBMITTED TO – MR. OJAS DESAI

Objectives of Electronics and Computer Software Council of India

i. To articulate challenges, concerns and problems of kits member exporters 

ii. To ensure that voice and concerns of members are articulated by policy makers  and   legislators. 

iii. To be proactive on policy initiatives that are in consonance with our mission. 

iv. To evolve a network of interested groups at national and international forums. 

v. To impact the policy and legislative environment so as to foster a  balanced economic, industrial and social development

Structure of Electronics and Computer Software Council of India

Electronics And Computer Software Council of India is the one organization which is governed by the industry representatives in the form of Committee of Administration elected for a period of two years.

ESC operates through State, Regional, Sectoral and Territorial Committees. The ESC Committees comprise of leading exporters and senior Government officials. ESC represents interests of Indian electronics and IT sector at Joint Trade Committees of Ministry of Commerce, Government of India as well as at Joint Business Councils of various countries.

Electronics and Computer Software Export Promotion Council (ESC) is a private industry association registered under the Societies Registration Act 1860. The Council has a membership base of over 2300 Indian Electronics and Information Technology Exporters across the country.

The Councils Membership constituents include accumen from Electronics Hardware, IT services, Telecom sector across the length & breadth of the Country. It is a pleasure to mention that ESC members contribute over 16 % to national export earnings. 

They have also built a team of industry members in each state who are ESC’s AMBASSADOR FOR MEMBERSHIP who can assist you to learn more about the benefits of ESC’s MEMBERSHIP.

Structure of Electronics and computer software Export promotion council of India

Other members of ESC Indiai. Shree sunil vachhaniii. Shree S radhakrishnaniii. Shree sanjiv narayaniv. Shree Arun Khannav. Shree Mandeep singh Purivi. Shree Prem M Goelvii. Shree Akshay Sheth

ChairmanShri Vinod Sharma

Vice ChairpersonSmt Radha Bhatia

vice chairmen Shree B S Sethia

Regional

Chairman

(North)Mr.

Veer Sagar

Co-Opted Memb

ersShree Nalin Kohli

Regional

Chairman

(West & East) Shri

Rahul L Kanodi

a

REgional

chairmen

(West & East) Shri

Saumen Chakraborty

Member

Secretary

shree D K

sareen

As the world’s second largest producer of textile and garments, India’s garments exports totaled US$ 10.70 billion during FY 2009-10, giving an inevitable market share of 3.2%. The Americas EU, much of Asia and Middle East are India’s clients.

The Industry proudly supports 7 million people as a part of its workforce, and aims to double this figure by 2011-12; even today it is the second largest provider of employment in the country. For every INR 100000 Invested in the industry, an average of 7 additional jobs created.

The Apparel sector also contributes to 7% of India’s total exports recording decline of 0.35% in 2009-10 against 2008-09 due to global downturn.

Come to India, for nowhere else in the world do you find such a superb amalgam of natural resources, industry expertise, entrepreneurial initiatives backed by friendly Government and a smart, winning attitude that spurs the Apparel industry to soar above the rest of the world in its

achievements!

viii. Shree Sanjay Agarwal

Product Profile of ECS

a. Consumer Electronics Video Software, Magnetic Cassette Tape, Wall Clocks,

Television, Recorded Compact Diskette, Electric Sound Amplifier, Analog Watches, Recorded Audio Cassettes, Blank Video Cassettes, Two in one (Radio cum Cassette Player), Electronic Calculators, Radio Communication Receivers, Musical System, Video Compact Disc, Recorded Video Cassettes, Alarm Clocks, Audio Software, Blank Audio Cassettes, Microphones etc.

b. Telecommunication Pagers, Telecom Software, Transmission apparatus, Push Button Type Telephone, Rural Automatic Exchange, Telecom Modules, Telecom Cards, Cordless Telephone, EPAB/EPAX/Intercom, Television cameras, Telephone Activity Monitor, Telephony or Telegraphy apparatus, Transmission apparatus, Communication Connector Box, Duplexers, Optical Fibre Cable, Modems, Direction measuring equipment etc.

c. Instrumentation Automatic Test Equipments, Electronic Automatic Regulators,

Linear ultrasound scanner, Uninterrupted power supply, Automatic typewriter, Battery Chargers, Industrial Machines & Instruments, Electric Inverters, Process control equipments, Induction heating furnaces, Geophysical instruments, Component Tester, Cable Fault Locators, Timer, Voltage Stabilizer, Frequency meter, Sensors, etc.

d. Electronic Components Unpopulated Printed Circuit Board, Soft Ferrite, Colour Picture

Tube, Connectors, Parts of Transformers, Dip bridge rectifiers, B/W Picture Tube, Hard Ferrites, X-Ray Tubes, Floppy diskettes, Erasing Heads, Printed Circuits, Static converters, Mica Capacitors, Resistors, Multicrystalline silicon ingots, Multi-crystalline Silicon Wafers, Mono and Multi Silicon Solar Cell, Solar Photolvoltaic Modules, Solar Photovoltaic Systems, Solar LED lights, Solar Water Heating Systems, Solar Cooling Systems, Single Glazed Flat Plate Collectors, Double Glazed Flat Plate Collectors etc.

e. Computer Hardware and Peripherals Winchester / Hard disc drives, Head Stack, CGA monitor,

Computer Parts, Switching Mode Power Supply, Data-entry Terminal, Dot Matrix Printer, Personal Computer, Add on cards, etc.

f. Computer Software & Information Technology (IT) Enabled Services

ESC provides following…… Providing membership to Indian industrial firms who are exporting computer

software and electronic items. A comprehensive database on the industry, companies, products, capabilities of all

major players in electronics, computer hardware, software and telecom products. Access and arrangements to facilitate import/export, collaborations, joint ventures,

subcontracting, tie-ups. Access to published reports on markets, products, trade statistics, business

opportunities; and  Facilitation in establishing joint ventures and strategic alliances - for contract

manufacturing, captive production, design and test facilities.

Various assistances provided by ECS

Following are the main assistance provided by the ECS to its members

i. The Council makes contacts with foreign missions in India as well as Indian missions abroad to collect necessary information to be disseminated among the member exporters.

ii. ESC provides market exposure to member exporters by participating in various expositions and trade delegations.

iii. ESC organizes interactive meetings for the member delegations and invites various delegations from all over the world.

iv. ESC organizes Buyer Seller Meets (BSMs) of member companies with global buyers in India and abroad

1. Marketing assistance schemes (Financial assistance as it provides finance also for such activities):

a. Marketing Development Assistance (MDA) Export promotion continues to be a major thrust area for the Government.

In view of the prevailing macro economic situation with emphasis on exports and to facilitate various measures being undertaken to stimulate and diversify the country’s export trade, Marketing Development Assistance (MDA) Scheme is under operation through the Department of Commerce to support the under mentioned activities :i. Assist exporters for export promotion activities abroad.ii. Assist Export Promotion Councils (EPCs) to undertake export promotion

activities for their product(s) and commodities. iii. Assist Focus export promotion programs in specific regions abroad like

FOCUS (LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN +2) programs.

b. Market Access Initiative (MAI) Scheme Market Access Initiative (MAl) Scheme is an Export Promotion Scheme envisaged

acting as catalyst to promote India's exports on a sustained basis, during the 10th five year Plan. The scheme is devised on focus product- focus country approach basis to evolve specific strategy for specific market and specific product through market studies / survey Assistance would be provided to Export Promotion Organizations/ Trade Promotion Organizations / Exporters etc for enhancement of export through accessing new markets or through increasing the share in the existing markets Under the Scheme the level of assistance for each eligible activities has been fixed.

c. Participation in Trade Fairs BSMs etc. Under the Scheme the assistance would be provided for participation in trade fairs /

exhibitions at identified potential places abroad on Focus Country-Product basis. Participation in such fairs / exhibitions will normally be part of a comprehensive strategy .To maximize the benefits such efforts should be linked with effective publicity campaign, seminars, buyer-seller meets etc. These activities will be coordinated by the Export Promotion Councils.

d. Advertisement tariff ESC website is visited by a number of people worldwide looking for a suitable

Indian partner for sourcing Electronics products, Computer software/services and ITeS. ESC brings you a number of advertisement opportunities to get noticed and highlight your product and services.

They provide two types of advertisementi. Center Banner Advertisement in the home page.ii. Right Banner Advertisement in the home page.iii. Advertisements in ELSOFTEX - ESC's bimonthly news journal.

i. Center Banner Advertisement in the home page SizeHeight: 154 pixelsWidth: 337 pixelsTariff: Rs. 15000/- per month for members and Rs. 25000/- per month for non members

ii. Right Banner Advertisement in the home page SizeHeight: 213 pixelsWidth: 220 pixelsTariff: Rs. 10000/- per month for members and Rs. 20000/- per month for non members

iii. Advertisements in ELSOFTEX - ESC's bimonthly news journal Elsoftex is circulated amongst the ESC members, various departments of

Ministries under the Government of India, Foreign Missions in India, Indian Diplomatic Missions abroad, ESC's counterpart organizations worldwide.

Place of advertisement and fees for members and non members are given below in the table.

Place for advertisement Fees for members of ECS

Non-members

Back cover Rs. 15000/ Rs. 25000/

Back Cover inside Rs. 10000/ Rs. 20000/Full page Rs. 8000/ Rs. 15000/Half Page Rs. 5000/ Rs. 10000/Center Spread Rs. 25000/ Rs. 35000/

So here we can see that special advertisement tariffs are there for members where advertisement’s rate for members is less than others.

2. Providing details of Global Tenders & Business Opportunities eNews Letter on Daily Basis to members

ECS has commitment to provide trade related information to member companies to help them enhance their export to global markets, ESC has initiated a new and unique service of providing information relating to Electronics Hardware and Telecommunication Computer Software / Services Global - tenders and procurement opportunities.

The tender information will include :i. Tenders

ii. Bid Notices & Corrigendum’s (if any).iii. Request for Quotesiv. Procurement forecastv. Expression of Interestvi. GPN ( General Procurement Notices)

The above information is being sent to all the ESC members on daily basis through email enabling them to save on – time, man power and infrastructure to gather information about new opportunities arising daily in electronics and ICT sectors.

3. Duty exemption scheme The scheme consists of……

i. Duty Free License, ii. Annual Advance Licenseiii. Duty Entitlement Pass Book (DEPB).

i. Duty Free License

Duty Free License include Advance License, Advance Intermediate License and Special Imprest License.

Imports of inputs which are physically incorporated in the exported product (making normal allowance for wastage) are permitted against a duty free license.

Application for duty exemption has to be filed in the prescribed proforma with the Office of the Licensing Authority of Directorate General of Foreign Trade (DGFT) under whose jurisdiction the applicant falls.

Exporters are eligible for the Customs Duty Free Licenses against specific order or on production program on the basis of upto 100% of the average FOB value of their exports in the preceding three licensing years. Such license is issued in accordance with the policy and procedure in force on the date of issue of the license and is subject to the fulfillment of time bound export obligation and value addition as may be specified.

ii. Advance License

An Advance Licence is granted to a merchant-exporter or manufacturer-exporter for the import of inputs required for the manufacture of goods without payment of basic customs duty.

However, such inputs shall be subject to the payment of additional customs duty equal to the payment of additional customs duty equal to the excise duty at the time of import, which shall be adjusted as specified in the policy. Manufacturer-exporters as well as

merchant-exporters are also exempt advance licence and/or material imported thereunder is not transferred even after completion of export obligation. Standard input/output norms for 227 electronic items have been fixed.

The eligible exporters of Electronic products also have an option to avail the Special Advance Licensing Scheme for export of electronic products.

In the revised EXIM policy in force from April 1, 1999, a provision for Annual Advance Licence has been made to reduce the avoidable interface between the exporter and the DGFT. This facility provides the necessary flexibility in the import of duty free inputs. The exporter would now be able to import any prescribed inputs as per input-output norms right through the year without approaching DGFT. The licence would be issued without stipulation of minimum value addition. In such cases where self-declaration. They will not have to await the decision of Regional Advance Licensing Committee (RALC)/Zonal Advance Licensing Committee (ZALC) for fixation of adhoc norms.

iii. Duty Entitlement Pass Book (DEPB).

Under DEPB Scheme exporters are eligible to claim customs duty credit as a specified percentage of FOB value of exports made in freely convertible currency.

The credit shall be available against such exports products and at such rates as specified by the DGFT. So far, credit rates for 93 electronic items have been notified under DEPB Scheme. 

The Pass Book would be issued with one year validity period either on post-export basis at single port of registration. The scheme covers both manufacturer and merchant exporters. Any item except those in the negative list shall be allowed for import. Third party exports are also admissible for credit under DEPB Scheme. The DEPB on post-export basis and/or the items imported against it is fully transferable.

4. Tax incentives to exporters by Government through ESC If export is being done from special Economic Zone( SEZ) then following benefits will

be provideda. Exporters are eligible for reimbursement of all custom duty paid on imported inputs

of an export product.b. 100% Income Tax exemption on export profits is available to Special Economic Zone

(SEZ) Units for 5 years, 50% for next 5 years and 50% of ploughed back profits for 5 years thereafter.

5. Electronic Hardware Technology Park (EHTP) Scheme The EHTP Scheme is a 100% Export Oriented Scheme for undertaking manufacturing

of electronic hardware equipment/components and other items in India.

6. Export Promotion Capital Goods (EPCG) Scheme The Zero duty EPCG Scheme is available to exporters of electronic products. It allows

import of capital goods for pre-production, production and post-production at zero% customs duty, export obligation equivalent to 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issue-date.

7. Free real-time access to its database on EU market information

Centre for Promotion of Imports from Developing Countries (CBI) has made available to ESC and ESC members free real-time access to its database on EU market information through the installation of an affiliate of this database on the website of ESC.

CBI's market information database contains around 2000 documents including market surveys, export manuals, documents on market access requirements, fashion forecast and CBI News Bulletin.

It covers all 27 EU member states and gives information on around 40 market sectors relevant for developing countries. Furthermore access is given to some 5000 selected hyperlinks to other useful websites.

ESC is offering a very useful new service to its members against no cost. The market information documents will be in the English language.

ESC’s performance:

Awarded FIEO's Prestigious Niryat Bandhu Award For Outstanding Export Supporting Activities for the last consecutive 7 years. 

ESC has been adjudged as the Best Trade Supporting Organization by Japan External Trade Organization (JETRO). ESC was the only organization among Developing Countries to receive this honour. Other recipients were USA & Italy

Articles for performance appraisal of ESC

Article: 1 By Economic times which says Computer software exports increases by 29% due to ESC

Summary:

The total export of computer software and services during 2006-07 has gone up by 29.4 per cent at $11.26 billion, according to the estimates made by the Electronics and Computer Software Export Promotion Council (ESC).

The total export was $8.7 billion in 2005-06. The southern state accounted for 61.23 per cent of software export, whereas the export from the northern region was 15.82 per cent.

Karnataka continues to be at the top in terms of its contribution to the total exports at 33.36 per cent in 2006-07, ESC said in a statement. Maharashtra has become the second highest software and services exporting state followed by Tamil Nadu (14.52 per cent) and Andhra Pradesh (12.27 per cent).

The share of northern region in the total export of software and services has decelerated from 17.93 per cent in 2005-06 to 15.82 per cent in 2006-07. The western regions contribution to the total export was 20 per cent, whereas the eastern region remained at the bottom of the rung and contributed only 2.9 per cent of the total national exports in the 2006-07.

Article: 2 By Economic times which says India's IT, software industry upbeat on future.

Summary: BERLIN: India's IT, software and electronics companies are upbeat about prospects

for growth of exports in the coming years, with industry leaders saying vast opportunities were opening up in new markets in the Middle East, Africa, South and Southeast Asia and Eastern Europe.

India's supremacy in the IT and software sector and its growing reputation as one of the world's best outsourcing destinations have created a good basis for further expanding and diversifying exports, according to participants in a major export promotion drive by the industry at the just-concluded IT and computer fair CeBIT at Hannover in Germany.

From the above two articles we can say that ESC’s performance is improving and exports due to ESC is increasing.

Contribution of ESC to Exports in various regions and states

INDIA’S OVERALL EXPORT DURING THE YEAR 2012-13

India’s overall export during the year 2012-13 is estimated to be Rs. 2116466 crore (US$ 441 billion) registering a growth of 19 percent (13 percent in US$ terms) over the year 2011-12 when India’s overall export was estimated to be Rs. 1779443 crore. (US$ 390 billion).The share of IT based Services in India’s overall export is estimated to be Rs. 662400 crore (US$ 138 billion).

Product profile of ESC wise export contribution is as following

1. EXPORT OF COMPUTER SOFTWARE / SERVICES INCLUDING ITES / BPO

Export of Computer Software / Services (including ITES / BPO) registered a growth of 24.38 percent (18.06 percent in US$ terms) during the year 2012-13 over the year 2011-12.  In value terms, export of this sector during 2011-12 is estimated to be Rs. 326500 crore (US$ 68.02 billion) up from Rs. 262500 crore ( US$ 57.61 billion) estimated in the year 2010-11

2. EXPORT OF ELECTRONICS HARDWAREExport of Electronics goods and components from India during the year 2012-13 registered a growth of 5.51 percent (0.15 percent in US$ terms) over the year 2011-12.  In value terms, export of electronics goods during the year 2011-12 is estimated to be Rs. 42627 crore (US$ 8881 million) up from Rs. 40400 crore (US$ 8867 million) estimated in the year 2010-11

3. EXPORT    OF   CONSUMER   ELECTRONIC   GOODS DURING 2010-11

Export of consumer electronic goods registered a decline of 12.36 percent (16.81 percent in US$ terms) during the year 2012-13 over the year 2011-12. 

In value terms, export of consumer electronics goods fell from Rs. 1400 crore (US$ 307 million) estimated in the year 2011-12 to Rs. 1227 crore (US$ 256 million) during the year 2012-13.

4. EXPORT OF ELECTRONICS INSTRUMENTS / O.E. / M.E.

Export of electronics instruments registered a growth of 24.44 percent (18.12 percent in US$ terms) during the year 2012-13 over the year 2011-12. In value terms, export of electronics equipments during the year 2012-13 is estimated to be Rs. 5600 crore (US$ 1167 million) up from Rs. 4500 crore (US$ 988 million) estimated in the year 2011-12.  Export of Electronics instruments from India has been growing at an annual average growth rate of 7.58 percent (3.87 percent in US$ terms) during the past five years.

5. INDIA’S MERCHANDISE EXPORT

The Country’s Merchandise Export registered a growth of 30 percent (23 percent in US$ terms) during the year 2012-13 over the year 2011-12.In value terms, India’s merchandise export increased from Rs. 1118823 crores (US$ 246 billion) estimated in 2011-12 to Rs. 1454066 crores (US$ 303 billion) during the year 2011-12.

6. EXPORT OF ELECTRONICS COMPONENTS

Export of Electronics Components registered a decline of 15.76 percent (20.04 percent in US$ terms) during the year 2012-13 over the year 2011-12.  In value terms, export of electronics components decreased from Rs. 18400 crore (US$ 4039 million) estimated in 2011-12 to Rs. 15500 crore (US$ 3229 million) in the year 2012-13.

7. EXPORT OF TELECOM EQUIPMENTS

Export of Telecom Equipments registered a growth of 22.97 percent (16.72 percent in US$ terms) during the year 2012-13 over the year 2011-12. 

In value terms, Export of Telecom Equipments has increased from Rs. 14800 crore (US$ 3248 million)  estimated in 2011-12 to Rs. 18200 crore (US$ 3792 million) estimated in the year 2012-13

8. EXPORT OF TELECOM EQUIPMENTS

Export of Telecom Equipments registered a growth of 22.97 percent (16.72 percent in US$ terms) during the year 2012-13 over the year 2012-13.  In value terms, Export of Telecom Equipments has increased from Rs. 14800 crore (US$ 3248 million)  estimated in 2012-13 to Rs. 18200 crore (US$ 3792 million) estimated in the year 2011-12.