April / May 2001


Dear Member,

As suggested by the Executive Committee, we have constituted a special sub-committee on Exports. A meeting of this Committee was held recently and I would like to recount some of the recommendations made by them. Many of these Recommendations would take us back to ACMA’s thrust area of the early and mid 1990s- The Focus on Exports.

The Sub-Committee in its deliberations felt that Exports were still not receiving the priority that it should. Over the last 10 years,our exports have shown a steady growth of about 15% - 20% per annum.

However, given a similar rate of growth in the total output of the industry, the percentage of exports to total production has remained stagnant at around 10%. This should be a matter of concern to all of us.

ACMA is committed to achieving an export target of US $ 1 billion by 2005. While this is a reasonable target and quite achievable, it would be very difficult to breast the tape at the current rate of growth. We have to make a concerted effort to increase the ratio of exports to total output from the existing 10% to at least 30% by 2005. The Sub-Committee also observed that "exports" could no longer be seen as an "additional" business avenue that contributes incremental revenues and foreign exchange. It is no longer the "cake" for industry. It is what will contribute the "bread" for survival of the industry in days to come. I fully endorse this hard truth, once again.

Each and every member should have a target to export at least 30% of the production by 2005. Companies must, allocate more resources for export marketing; participate in more international shows to seek new opportunities. Constant up-gradation of quality and productivity is, of course, an imperative. If ACMA members can reach their individual targets, I am sure that as an industry sector, we shall certainly be able to meet out export target of US $ 1 billion. This will, significantly, enhance our image in India’s business landscape. We will then, also, become a force to reckon with in the country’s economic and industrial decision making process.

L Ganesh