FEDERATION OF INDIAN CHAMBERS OF

COMMERCE AND INDUSTRY

The Federation of Indian Chambers of Commerce and Industry (FICCI) is an association
of business organizations in India, headquartered in the national capital New Delhi. FICCI
is one of the main organizations to fund and support many governmental and non-
governmental educational institutes. It was founded by GD Birla and Purushottam Takkur
, on the advice of Mahatma Gandhi.

Established in 1927, FICCI is the largest and oldest apex business organisation in India.
Its history is closely interwoven with India's struggle for independence and its
subsequent emergence as one of the most rapidly growing economies globally. FICCI
plays a leading role in policy debates that are at the forefront of social, economic and
political change. Through its 400 professionals, FICCI is active in 39 sectors of the
economy. FICCI's stand on policy issues is sought out by think tanks, governments and
academia. Its publications are widely read for their in-depth research and policy
prescriptions. FICCI has joint business councils with 79 countries around the world.

A non-government, not-for-profit organisation, FICCI is the voice of India's business and

industry. FICCI has direct membership from the private as well as public sectors,
including SMEs and MNCs, and an indirect membership of over 83,000 companies from
regional chambers of commerce.

FICCI works closely with the government on policy issues, enhancing efficiency,
competitiveness and expanding business opportunities for industry through a range of
specialised services and global linkages. It also provides a platform for sector specific
consensus building and networking.

Partnerships with countries across the world carry forward our initiatives in inclusive
development, which encompass health, education, livelihood, governance, skill
development, etc. FICCI serves as the first port of call for Indian industry and the
international business community.

CURRENT STANDING OF FICCI

The Federation of Indian Chambers of Commerce and Industry (FICCI) is the

rallying point for free enterprises in India. It has empowered Indian businesses, in
the changing times, to shore up their competitiveness and enhance their global
reach. With a nationwide membership of over 1500 corporates and over 500
chambers of commerce and business associations, FICCI espouses the shared
vision of Indian businesses and speaks directly and indirectly for over 2,50,000
business units. It has an expanding direct membership of enterprises drawn from

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large, medium, small and tiny segments of manufacturing, distributive trade and
services. FICCI maintains the lead as the proactive business solution provider
through research, interactions at the highest political level and global networking.
In the knowledge-driven globalized economy, FICCI stands for quality,
competitiveness, transparency, accountability and business-government-civil
society partnership to spread ethics-based business practices and to enhance the
quality of life of the common people. FICCI reach is not restricted or dominated by
large business houses. They provide service and support to all cross section of
industry and trade irrespective of their size. In fact, they have a separate
Committee, which handles the specific issues relating to small and medium sector
in India. By definition, the small and medium sector in India is possibly equivalent
to the "tiny sector" that is in the US. FICCI is closely associated with the Indian
SME's as they invite them on delegations to help provide them international
linkages with industry clusters abroad. FICCI's membership structure also
provides direct as well as indirect linkages with the SME's all over the country.

OBJECTIVES
 To be the official investment facilitation agency for Indian or foreign investors
 Act as the first reference point for any investor interested in India
 Facilitate investors in identifying and realizing investment opportunities
 Assist in getting approvals from Central & State Governments
 Special focus on small/medium/mid-size companies - guidance and handholding
services to foreign investors
 Review approved projects so as to help and support their implementation
 Feedback to Central and State Governments on policy initiatives

FICCI ‘S STRENGTH
 Represent over 280000 companies

 Represent over 500 chambers and associations

 Over 400 professionals with advanced degrees

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  Policy and regulation advocacy

 National and international events

 Primary research

 World class publications

 Major quarterly and annual surveys

 Business confidence surveys

 Economic forecasts

 Global connectivity

KEY POLICY CHANGES ACHIEVED IN THE

FOLLOWING SECTORS
 Agriculture
 Corporate Law
 Education
 Environment
 Entertainment
 Health
 Hydrocarbon
 Real Estate
 Sports
 Transport Infrastructure

INDUSTRY ASSOCIATIONS
 Cement Manufacturers’ Association
 Indian Electrical and Electronics Manufacturers’ Association
 Fertilizer Association of India
 Builders Association of India
 Indian Sugar Mills Association
 National Association of Software and Service Companies (NASSCOM)
 Indian Pharmaceuticals Alliance
 All India Steel Rollers Association
 Basic Chemicals, Pharmaceuticals and Cosmetics Export Promotion Council

CHAMBERS OF COMMERCE
 Federation of Andhra Pradesh Chambers of Commerce and Industry
 PHD Chamber Commerce and Industry (A State Chamber covering 9 states, PHD
– Progress Harmony Development)

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  Federation of Gujarat Industries
 Federation of Karnataka Chamber of Commerce and Industry
 Federation of Madhya Pradesh Chamber of Commerce and Industry
 Rajasthan Chamber of Commerce and Industry
 Bengal National Chamber of Commerce and Industry
 Maharashtra Chamber of Commerce , Industry and Agriculture

PRESENT PROBLEM
As FICCI offers a wide range of services in India as well as globally the biggest problem
or the challenge that FICCI faces is the co-ordination of activities and the implementation
of the solutions provided by it.

CORE COMPETENCE OR COMPETETIVE EDGE

 Leading Role in Policy Debates

 Forefront of National Affairs

 Expert Committees/ Task Forces address all Important Sectors of the Economy

 Promotion and Facilitation of Trade and Investment

 Strong Business Network with 100-plus functioning Web Portals

 Customized Business Solutions in Quality Assurance, Energy Efficiency, Water

and Environmental Audit

 Organizing over 600 Seminars, Conferences and Conclaves every year

 Focus on Policy-Shaping Research

 Fostering Global Connectivity

 Forum of Parliamentarians

 Exhibitions and Trade Fairs

 Business Facilitation and Services

 World Class Infrastructure with state-of-the-art offices

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 Sprawling headquarters in New Delhi spread over 8000 square metres, with a

stand-alone auditorium of 600 seats

FUTURE PLANS
1) DRDO is already in a franchisee kind of agreement with the federation of Indian

Chambers of Commerce and Industry (Ficci) to market about 20 DRDO-licensed

products for civilian application.

2) The delegation, in association with the Federation of Indian Chambers of

Commerce and Industry (Ficci) and led by Information and Broadcasting Minister

Ambika Soni, met Mukherjee as part of pre-Budget consultations.After meeting

Mukherjee, Ficci said it had demanded that entertainment taxes in case of

multiplexes be included in the proposed Goods and Services Tax (GST) regime.

However, “multiplex operators should be exempted from payment of duties on

import of cinema equipment, till GST is introduced,” it added. The delegates also

recommended that necessary equipment and hardware for film production be

allowed to be imported without the additional burden of the Customs duty.Ficci, in

a report to the finance minister, said digitisation was vital for the growth of the

industry. “There is a need for clear and well-defined roadmap for the transition

from analog to the digital mode across the country. Digitisation should be

supported through fiscal incentives,” it said. Industry stakeholders recommended

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 that Customs duty on set-top boxes be minimised to bridge the demand-supply

gap in the industry.

3) FICCI suggests 5-point agenda to tame food inflation

The Chamber has suggested that FDI in retail should be permitted with the

stipulation that the organized retail chains would work closely with farmers in

imparting better know-how and providing inputs to improve the productivity and

directly sourcing from farmers. Food inflation has been in double digits for more

than a year, primarily due to severe pressure from fruits & vegetables, eggs, meat

and marine products. The present onion crisis is more ‘episodic’ and would be

resolved in 2-3 weeks time with fresh arrivals from major onion growing regions in

the country. The government should look at addressing the structural issues

related to APMC Act in order to ensure that food inflation is effectively controlled.

According to FICCI, the present onion crisis is no doubt a direct consequence of

supply side constraints; the situation is further aggravated by the monopoly of

traders in APMCs created by the provisions of the APMR Act. Most of the APMCs

limit the number of licenses issued in a particular market, thereby restricting and

eliminating competition required for efficient market functioning. As a result, in

situations of limited supply of a particular commodity, the prices get artificially

inflated due to limited number of colluded traders.

In this context, FICCI has argued that there is an urgent need to accord a special

status to perishables and horticulture commodities. The horticulture commodities

should be de-listed from the schedule-I containing notified commodities in APMR

Acts of all states. By doing so, it would mean that anyone can buy or sell only

perishable commodities anywhere in the country. This would also mean that zone

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 of influence of perishables would be beyond states resulting in better prices for

farmers and stabilized prices for consumers as a result of more market players.

FDI in retail has to be permitted in order to ensure expansion of organized

retailing in the country. FICCI feels FDI in retail should be only permitted with a

stipulation that the organized retail chains would work closely with farmers in

know-how and providing inputs to improve the productivity and directly sourcing

from farmers. This would result in better prices to farmers as well as consumers

and also addressing the structural issues such as low productivity and wastage.

Large retailers could be required by law to procure major part of their supplies

locally. At the same time farmers cooperatives could be promoted to ensure

sufficient. The long chain of intermediaries and inefficient price discovery

mechanism are the reasons for high price mark-ups between farmers and

consumers. Therefore, FICCI has suggested that farmers should be encouraged to

form producer associations/farmer cooperatives and aggregate the produce, which

could be directly sold on electronic spot exchanges or to retailers at consumption

centers.

Further, all the markets should be electronically linked by introducing electronic

auctions or electronic spot exchange counters for transparent price discovery. This

would lead to improved efficiency and better price discovery for both the farmers

and consumers. The producers will also have access to on-line price information

and arrivals in different markets across the globe for better understanding of

market trends enabling them to plan their crop acreages. The government of

India could consider providing special funds to APMCs for developing electronic

auction platforms.

FICCI has noted that there are problems related to frequent checks at borders

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 multiple toll taxes that severely hampers the quality of perishables and at times

result in complete wastage of consignment carrying perishables over long

distances. Therefore the Chamber has suggested that the Government should

look at encouraging truck operators to operate fleet of transport carriers with

special green permits, which would permit them to swiftly move across the

border with minimal inspections.

4) FICCI Quality Forum (FQF) CDM Division works on capacity building and

awareness related to the Clean Development Mechanism defined in the Kyoto

Protocol. The purpose of the regional workshops is to bring together the key

stakeholders, to exchange information and map out the path forward in CDM

activities. FICCI, working very closely with Government of India strives to sharpen

the competitive edge of Indian CDM enterprise through training and consultancy.

WE WOULD LIKE TO CONCLUDE IN THE

WORDS OF our honourable Prime Minister of India, Dr.
Manmohan Singh who said

“Organisations like FICCI, with your extensive contacts, have played a

constructive role in facilitating greater political consensus in favour of economic
policies that will take our country forward. There is, however, an unfinished
agenda that is yet to be completed. You have, therefore, much more work to do in
shaping new policy formulations in the year that lie ahead!”

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 BIBLIOGRAPHY

WWW.FICCI.COM

http://www.ficci-
cdm.biz/project_deliverables.htm

http://smetimes.tradeindia.com/smetimes/news/t
op-stories/2011/Jan/17/ficci-suggests-5-point-
to-tame-food-inflation.html

http://www.ic2.utexas.edu/global/partnerships/in
dia-ficci.html

http://en.wikipedia.org/wiki/Federation_of_Indian
_Chambers_of_Commerce_and_Industry

http://www.biztradeshows.com/ficci/
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