flying towards becoming an aviation hub - eiciindia.org (2).pdf · 4 expressvson nov ec cover story...

VOL 64 NOV - DEC 2017

Indiaflying towards becoming

an aviation hub

Nov - Dec 2017 Expressvision 1

Dear Readers,

As we come to the end of the calendar year, the good news is that airline cargo bosses are in an upbeat mood, with a new IATA survey suggesting a continued strong financial performance in the second half of 2017. Exactly 80% of respondents (airline chief financial officers and heads of cargo) surveyed reported that profitability increased in year-on-year terms in the third quarter of this year up from just 36% in the first quarter of the year. This response represents the strongest outcome in 10 years, IATA revealed. Also, 87% of respondents said they believe that the profit outlook will be unchanged or improve over the year ahead, supported by ongoing robust demand.

Meanwhile India is set to become the third-largest aviation market in the world in terms of passengers by 2026, and an aviation hub for maintenance, repair and overhaul of aircraft, Vice President M. Venkaiah Naidu said recently. He said, India is witnessing a high-growth trajectory and is set to become the third-largest aviation market in the world in terms of passengers by 2026. Naidu also highlighted that Indias air cargo is estimated to grow at nine per cent over the next few years, and IATA also expects the air passengers to double from 3.8 billion air passengers in 2016 to 7.2 billion by 2035.

A new chapter is being written between Afghanistan and India. Afghanistan Chamber of Commerce and Industry (ACCI) said that since the establishment of the new air corridor amid Afghanistan and India, almost 900 tons of fresh fruit has been exported to India. According to the ACCI a total of 14 cargo flights from Kabul and Kandahar have transported the fruit in the past three months. ACCI said the process of exporting goods via the air corridor was ongoing successful and cargo flights would increase in future.

Tuning our focus to the Pharma market, it has shown signs of recovery in October, after months of sluggish growth in the aftermath of the GSTs implementation. The market registered a growth of 6.5 percent, with sales of Rs 10,376 crore in October after seeing a strong growth in dermatology and anti-diabetic drugs, and a turnaround in gastro-intestinal medicines and anti-infective. Among the top-10 in the April-October period, only derma (11.6%) and anti-diabetics (13.9%) segment showed a double-digit growth rate. Among the top-10 companies, GSK showed the highest growth at 23.7%, followed by Mankind at 21.1% and Alkem at 13.2%. Overall during the month, 43 companies showed a positive growth among the top 50 which could be a sign of revival, the analysis said.

MSME secretary Arun Kumar Panda has urged the 60 million MSMEs to look beyond the borders and showcase their skills and excellence to the global market. At an event, Panda expressed hope that trade expos like this will act as a unique platform to integrate the khadi and village industries, micro, and MSMEs in the global value chain. He has also highlighted the need to shift the focus to emerging sectors and promote the bottom 10 items in the list of exports.

Pg. 4

India flying towards becoming an aviation hub Pg. 7

Air cargo chiefs give thumbs-up! Pg. 10

Look beyond boundaries Pg. 13

Afghanistan exports to India on the rise Pg. 16

Pharma market show signs of recovery Pg. 18

Indias Road to Success

Pg. 20

Shielding Sensitive Cargo

Editorial

EDITORIAL COMMITTEER K Saboo - Chairman, EICIVijay Kumar - COO, EICI

Design By Sameeksha Consultancy Services, Mumbai

On behalf of EXPRESS INDUSTRY COUNCIL OF INDIA501, 5th Floor, Crystal Centre, Raheja Vihar, Off Chandivili Farm Road, Powai, Mumbai - 400 072.Tel + 91 22 4057 1111. Fax + 91 22 4057 1100E-mail [email protected] www.eiciindia.org

Contents

Best wishes R K Saboo

Expressvision Nov - Dec 20172

News

Emirates SkyCargos half year volumes up 5%Emirates SkyCargo saw a 5% rise in cargo volumes to 1.3m tonnes for the financial half year while yields improved by 8%. Dubai parent Emirates Group, announcing the six month results to end of September 2017, said: This solid performance speaks to Emirates SkyCargos recent investments in products and services tailored to key sectors, and is also a positive sign of a gradual recovery in the global air freight market.

International NewsOman switches over to SmartKargoOman Air Cargo has introduced a new 100% Cloud-based

cargo ERP (enterprise resource planning) solution from

SmartKargo: an advanced cargo management platform

suitable for airlines, ground handlers, sales agents and

regulators. Oman Air stated that it chose SmartKargo to

maximise the potential of its cargo business leveraging

the solutions advanced, real-time capability to bring digital

transformation to all aspects of the business and thereby

improve both its revenues and quality of customer service.

SmartKargo offers web-based browser access for Oman

Airs agents and employees.

E-commerce leads Aramex profit growthMiddle East based forwarder Aramex said its net profits

had increased by 13% in the third quarter of 2017 to AED

81.6m, up from AED 72.2m in 2016. Revenues in the third

quarter, ending September 30, also increased 9% to AED

1,144m, compared to last years AED 1,050m. Were it not

for currency fluctuations, especially the Egyptian Pound,

revenues would have grown at around 11%, said Aramex.

China launches worlds first fully electric cargo shipChina has launched the worlds first all-electric ship, which can travel up to 80km with 2000-tonnes cargo after a two-hour charge, reports said. The 70.5-metre-long ship, which weighs about 600 tonnes, was launched in Guangzhou in South Chinas Guangdong Province, the report said. The vessel, manufactured by the Guangzhou Shipyard International Company Ltd, is powered by a 26-tonne lithium battery. It can cruise at the top speed of 12.8 km per hour. As the ship do not use fossil fuels, it has zero emission, including carbon, sulphur and PM2.5 and it could be used as a passenger liner or a working ship, the report said.

Natilus cargo drone closes second round of seed fundingCargo drone startup Natilus announced that it has closed

a second round of seed funding with investment from

Starburst Ventures, Seraph Group, Gelt VC, Outpost

Capital and Draper Associates. The funds will go towards

aggressively scaling, in anticipation of the startups first

Federal Aviation Administration-approved flight for its 30-

foot prototype. The test flight is scheduled for late 2017, and

a commercial market launch is set for 2020.


News

Domestic NewsAir cargo operations from Vizag bring cheer to exportersThe launching of air cargo operations from Visakhapatnam has brought cheers among exporters from the region. Though the decision may bring some imports, it will mainly benefit pharma, apparel and seafood exporters who have been demanding for the past several years the completion of work on the air cargo complex, which was bogged down by several technical problems. Finally, after obtaining clearance from the Ministry of Civil Aviation, air cargo operations were launched from the Visakhapatnam International Airport recently.

Cargo handling at Coimbatore airport to be automated: AAIThe Airports Authority of India, along with its cargo services arm AAI Cargo Logistics and Allied Services Company (AAICLAS), is working to automate cargo handling at the airport which is likely to be completed by November-end, AAICLAS official said. Meanwhile AAICLAS focus will be on new businesses, products and new verticals in cargo trade, besides development of pack house facilities and development of ICD, bonded truck and offshore AFS facilities in the region. AAICLAS will also focus on development of apron for cargo docking and landing of wide-bodied aircraft.

AAI to strengthen air cargo complex infra in TNAirports Authority of India plans to strengthen the cargo infrastructure at the air cargo complex in Tamil Nadu and tap the cargo potential of the western region. Airport authority official said that a project for Rs. 30 crore has been proposed and the aim was to complete the work by next December. It would include creating aircraft bays close to the cargo site and developing infrastructure such as cold storage at the cargo complex.

CBEC to test online processing of trade documentsTo promote ease of doing business, the revenue department

has decided to launch shortly paperless processing of

documents at Chennai and New Delhi on pilot basis. In

March 2016, the Central Board of Excise and Customs

(CBEC) had stated that it was in process of procuring IT

infrastructure to capture digitally signed copies of the

supporting trade documents. Under project Saksham, the

CBEC has upgraded its IT infrastructure, which would inter

alia be used for introduction of paperless processing under

Single Window Interface for Facilitation of Trade (SWIFT),

the Board said in a circular.

City firm likely to construct cargo terminal at SuratAfter the state government agreed to provide immigration

staff, the Airports Authority of India (AAI) is likely to finalize

the financial bid of a city-based firm for constructing

modular cargo terminal at Surat airport. Official sources

said the scrutiny of tender documents is almost over and

the city-based construction company is the front-runner. At

least 19 companies from other states and five from the city

had participated in the bidding process.


Cover Story

India flying towards

becoming an aviation hubWith its consistent double-

digit growth in domestic passenger traffic, India is set to be the third largest

aviation market in the world by 2026

India is set to become the third-largest aviation market in the world in terms of passengers by 2026, and an aviation hub for maintenance, repair and overhaul of aircraft, Vice President Mr. M. Venkaiah Naidu said recently.

In his address after inaugurating the 2nd Aero Expo India 2017, Mr. Naidu called the aviation sector an important driver of economy. I am sure India will soon emerge as an aviation hub not only in terms of increased air connectivity but also in terms of Maintenance, Repair and Overhaul (MRO) facilities and setting up of ancillary units. He said, In the coming years, India is expected to witness rapid growth in the aviation sector. India became the worlds fastest growing domestic travel market for the 22nd time in a row recording a 26.6 per cent year-on-year growth in January 2017, according to IATA. India is witnessing a high-growth trajectory and set to become the third-largest aviation market in the world in terms of passengers by 2026.

Mr. Naidu also highlighted that Indias air cargo is estimated to grow at nine per cent over the next few years and IATA also expects the air passengers to double from 3.8 billion air passengers in 2016 to 7.2 billion by 2035. With increasing disposable incomes and a burgeoning middle class, air travel will witness further spurt in the years ahead, he said adding that he was happy that governments Udan scheme seeks is promoting regional connectivity by serving the un-served and under-served airports. Connecting Tier-II cities, pilgrim towns and historic places with the wider air routes is important for boosting tourism and business travel, he added.

Third-largest market by 2026India will displace the United Kingdom as the third-largest market by 2026 by passenger traffic, a new study by IATA said. India will also


Cover Story

be the third fastest aviation market in terms of new passenger addition, behind only China and US, the report said. India will have 275 million new passengers for a total of 378 million till 2034. China is expected to have 758 million new passengers for a total of 1.196 billion, while the US will have 523 million new passengers for a total of 1.156 billion.

In terms of routes, Asian, South American and African destinations will see the fastest growth, reflecting economic and demographic growth in those markets, the report said. Indonesia-East Timor will be the fastest growing route, at 13.9 per cent, followed by India-Hong Kong at 10.4 per cent. The demand for air transport continues to grow. There is much work to be done to prepare for the 7 billion passengers expected to take the skies in 2034, IATA said.

China and India are growing fast, with annual growth this year-to-date of 12.5 per cent and

16.5 per cent respectively. India has bounced back from a subdued 2014, and is seeing a strong increase in domestic frequencies.

Employment generator In the next ten years then, the Indias aviation market will generate close to 2.6 million direct, indirect and induced jobs, said a report released by Centre for Asia Pacific Aviation (CAPA) recently.

The current staffing, as on FY 2017 is 1,97,309 which is expected to reach 4,32,021 by FY 27 and all of this would be direct jobs, said the CAPA report. At the top of the rung are vacancies for the job of commercial pilots in airlines. Currently, India has 6,772 pilots and by FY 2027 it would need 16,802, said the CAPA report.

The growth in demand for cabin crew jobs will be more than double with the current 11,000 cabin


Cover Story

crew positions to grow to 26,325 in a decade. As for maintenance engineers, there will be 34,972 posts, up from the current 14,220.

In all, there will be a 142 per cent growth in jobs with a total of 1,65,533 posts for jobs of pilots, flight attendants, engineers, administration and management staff in the Indian commercial airline and general aviation industry (including charter aircraft, flying clubs, private aircraft) by 2027.

Then there will be 2,66,488 jobs in other aviation fields like airport operations and management, ground handling, cargo and warehousing, commercial, retail, fire, security, air traffic control, etc. Currently, there are 1,20,006 jobs in this category, said the CAPA report.

However, the need of the hour is massive investment in training and education infrastructure, the report said, adding the state of Indias aviation training was significantly

below par both in infrastructure standards of training and quality of instructors. Indian aviation system spends on training is almost negligible, it said, adding that most of the current spends are focused on training driven by regulatory compliance.


Forecast

Air cargo chiefs give thumbs-up!

Expect another year of solid demand,

say air cargo heads, as they believe that

the profit outlook will be unchanged

or improve over the year ahead,

supported by ongoing robust

demand

Airline cargo bosses are in an upbeat mood, with a new IATA survey suggesting a continued strong financial performance in the second half of 2017. IATAs latest business confidence survey, conducted in early-October, asked for the opinions of airline chief financial officers and heads of cargo.

Exactly 80% of respondents reported that profitability increased in year-on-year terms in the third quarter of this year up from just 36% in the first quarter of the year. This response represents the strongest outcome in 10 years, IATA revealed. Also, 87% of respondents said they believe that the profit outlook will be unchanged or improve over the year ahead, supported by ongoing robust demand.

Costs have risen, primarily as a result of higher oil prices. Nevertheless, almost half of all respondents indicated that they witnessed an increase in their airlines cargo yields over the same period. In terms of demand, the October survey found that 58% of respondents a percentage unchanged


Forecast

from last quarter reported a year-on-year rise in cargo volumes in the third quarter of 2017.

Just 12% of respondents suffered a decrease in cargo volumes. Looking ahead, 48% of respondents reported that they expect a further increase in cargo volumes over the year ahead, down from 58% last quarter. However, none of the respondents currently expect their cargo volumes to decrease over the next 12 months.

Air cargo growth continuesThe International Air Transport Association (IATA) released data for global air cargo markets in September 2017 showing that demand, measured in freight tonne kilometers (FTKs), rose 9.2 per cent compared to the same month in 2016. This was the slowest pace of growth seen in five months, but still significantly higher than the five-year average growth rate of 4.4 per cent, the IATA said.

Cargo capacity, measured in available freight tonne kilometers (AFTKs), rose by 3.9 per cent compared to September of last year - less than

half the pace of demand growth. This is positive for industry load factors, yields, and financial performance, according to the IATA.

Commenting on the latest figures, IATA said: Demand for air cargo grew by 9.2 per cent in September. While thats slower than in previous months, it remains stronger than anything we have seen in recent memory. But there are signs that this demand spurt may have peaked. So it becomes even more important to reinforce the industrys competitiveness by accelerating the modernisation of its many antiquated processes.

With year-to-date demand growth of 10.1 per cent, the IATA forecast of 7.5 per cent growth in air cargo demand for 2017 appears to have significant upside potential even if the peak of the economic cycle has passed. Airlines in all regions reported an increase in year-on-year demand in September.

Asia-Pacific airlines saw cargo volumes increase by 9.3 per cent in September 2017, compared to the same period last year. Capacity in the region expanded 5.3 per cent. Demand growth was


Forecast

strong on all the major routes to, from and within Asia-Pacific, consistent with strong export order books for the regions manufacturers. Exporters in Chinese Taipei, China and Japan all reported growing order books.

North American carriers posted an increase in cargo volumes of 7.4 per cent for the month; the

region also posted the second fastest international growth rate among regions (11 per cent). Capacity increased 1.4 per cent. The strength of the US dollar boosted the inbound cargo market in recent years. European airlines posted a 10.3 per cent increase in cargo demand in September 2017, and a capacity increase of 5.6 per cent. Concerns that the recent strengthening of the euro might have affected the regions

exporters have not materialized, IATA said. In fact, German manufacturers export orders are growing at their fastest pace in more than seven years. Cargo demand is strongest on the routes to and from Asia - which have received a boost in trade from the economic stimulus measures put in place by China - and across the Atlantic.


MSMEs

MSME Secretary Mr. Arun Kumar Panda has asked the 60 million MSMEs to look beyond the borders and showcase

their skills and excellence to the global market

Look beyond boundaries

Addressing the World Trade Expo 2017 held recently in Mumbai, MSME Secretary Mr. Arun Kumar Panda expressed hope that trade expos like this will act as a unique platform to integrate the khadi and village industries, micro, and MSMEs in the global value chain. Noting that around 60 million MSMEs contribute 90 per cent to industrial production, he said, It is time MSMEs look beyond the borders and showcase their skills and excellence to the global market.

The foreign trade policy aims to increase share of exports in world to 3.5 per cent from under 2 per cent, according to the commerce ministry. The commerce ministry has also highlighted the need to shift the focus to emerging sectors and promote the bottom 10 items in the list of exports.

Economy to touch USD 5 trillionMeanwhile Commerce and Industry Minister Mr. Suresh Prabhu, speaking at the expo, exuded confidence that exports will gather momentum going forward as the economy is on course to double to USD 5 trillion and become the third largest in the world, over the next few years.

Our economy shall grow from USD 2.5 trillion now to USD 5 trillion and it will become the third largest over the next few years. With such an economic growth, our international trade will also grow, Mr. Prabhu said. This expo is being held at a time when the economy is growing faster than before. I am sure this expo will help foreign countries understand India


MSMEs

and its economy better in promoting trade, Mr. Prabhu said. Representatives from over 37 countries are participating in the two-day expo. These countries account for 17 per cent of the countrys total trade.

Recently, the American brokerage, Bank of America Merrill Lynch, had projected that India would overtake Japan to become the third largest economy in the world by 2028 as it expects the nominal GDP to clip at 10 per cent over the next one decade. The report noted that at USD 2.26 billion the country has already overtaken Brazil and Russia to emerge as the second largest BRIC economy after China and is well on track to cross France and Britain to emerge as the worlds fifth largest after Germany by 2019.

Mr. Prabhus statement comes two-days after his ministry said exports dipped 1.12 per cent to USD 23bn in October and trade deficit ballooned, retreating from a six-month high growth in September as shipments of textiles,

pharma, leather and gems and jewellery fell.

Imports, however, grew by 7.6 per cent to USD 37.11 billion in October from USD 34.5 billion in the year-ago month. Trade deficit widened to USD 14 billion from USD 11.13 billion in October 2016. Cumulative exports during April-October rose slowly 9.62 per cent to USD 170.28 billion, while imports grew almost three times faster at 22.21 per cent to USD 256.43 billion, leaving a trade deficit of USD 86.14 billion.

NBFCs to dominate Non-banking financiers will continue to dominate the lending space to MSMEs which have been out of the formal credit system for long, and their share of loans to this segment is expected to reach over 20 per cent in the next two years, says a report. As of fiscal 2017, the MSME credit market stood at Rs 14 trillion which may grow by 11 per cent each in the next two years, rating agency Crisil said recently.


MSMEs

Over the past five fiscals ending 2017, non-banking finance companies recorded a four-fold increase in their credit book to MSMEs. Consequently, their cumulative market share in MSME financing rose to 18 per cent in fiscal 2017 from 8 per cent five years ago, Crisil said, adding this will rise to over 20 per cent in two years. Lenders have been trying to protect their return on assets by focusing on smaller loans, where yields are higher, and on unsecured loans. For NBFCs, unsecured loans account for 20 per cent of the MSME portfolio as of March 2017.

And the agency sees the trend continuing for at least the next two years. Over the next two fiscals, too, we expect NBFCs to outperform banks with sharper focus on small-ticket loans, adoption of technology and data analytics, and focus on smaller towns and cities. Overall the formal credit to the MSME sector is seen clipping at 11 per cent each over the next two years, it said, adding, however, this is lower than the 13 per cent. This is against industrial credit growth of around 7 per cent. This faster growth is a result of the formalisation of the MSME finance market after the note-ban and the rollout

of the goods and services tax.

The report, however, noted that while competition has intensified and asset quality has weakened, the overall opportunity remains compelling, given the huge under-penetration of formal finance in the MSME segment. Moreover, structural changes such as GST will increase transparency in MSME financials. Competition in MSME lending has intensified, putting pressure on yields. For example, in loan against property, the net interest margin has compressed 75 bps in the past two years, Crisil said.

Asset quality of MSME loans worsened due to demand side pressure and liquidity issues after note ban. Over the course of fiscal 2017, gross non-performing assets across lenders rose by 70-100 bps. With GST compounding the challenges for MSMEs, especially the unorganised lot, the overall asset quality picture will likely deteriorate before improving. Competitiveness of MSMEs will be determined by the extent of tax avoidance, their position in the value chain, labour cost arbitrage, product offering, local market knowledge and proximity to customer, Crisil said.


Exports

Afghanistan exports to India on the rise

Since the

establishment of

the new air corridor

between Afghanistan

and India, almost 900

tons of fresh fruit

has been exported to

India, which is likely to

increase in future

Fresh and dried fruits weighing 40 tons were flown from southern Kandahar province to India through the Afghanistan-India air corridor, Afghan officials said. It was the fourth cargo plane exporting fruits from Kandahar to India since the Afghanistan-India air corridor was inaugurated.

According to Afghan spokesperson, the fourth cargo plane loaded with 40 tons of fresh and dried fruits flew from the Kandahar International Airport to India recently. The spokesperson said the fruits included grapes, pomegranates, fig and other fruits. He said the process of exporting goods via the air corridor was ongoing successful and cargo flights would increase in future.


Exports

The first cargoAfghanistan Chamber of Commerce and Industry (ACCI) said that since the establishment of the new air corridor between Afghanistan and India, almost 900 tons of fresh fruit has been exported to India. According to the ACCI a total of 14 cargo flights from Kabul and Kandahar have transported the fruit in the past three months. However, the cargo flights between Afghanistan and India had to be halted for some technical problems, but the process resumed after the problems were resolved. Officials say the flights process would be accelerated and traders would be provided with all needed facilities for making the business through the air corridor more successful.

However, Afghan

fresh fruit traders have

asked officials of the

Afghanistan Chamber

of Commerce and

Industry (ACCI) to

accelerate cargo

flights because the

air transportation

was cost-effective

and easy compared to land. It takes six days to

export fruits from Afghanistan to India by land,

with a kilogram costing 60 cents, compared a

few hours journey and 20 cents cost on per kg

by air.

ACCI officials say several cargo flights, most

of them from Kabul, had been made from

Afghanistan to India since the corridors

inauguration. ACCI said that dozens of tons of

fruits and medical herbs worth millions of dollars

were exported to India via the air corridor. The

officials said the cargo flights were suspended

due to some technical problems which had

been solved.


Exports

Air corridor aim On June 19 President Ashraf Ghani and India Prime Minister Mr. Narendra Modi formally inaugurated the Afghanistan-India Air Corridor in capital Kabul. The aim of the air corridor is to develop commerce and economy and remove transit barriers between Afghanistan and India.

The latest cargo flight from Kandahar comes after Pakistan recently increased taxes on imported goods including fruits from Afghanistan, forcing

importers in Kandahar to cease operations.

Afghan Fresh Fruits Traders Association said

traders had stopped exporting to Pakistan

after the country increased taxes on imported

goods. The association said Pakistan previously

charged 6,000 Pakistani rupees tax on each ton

of pomegranates from Kandahar but increased

the duty to Rs 15,000 in the new tax policy. In

the past, the tax on one ton of grape was 8,000

Pakistani rupees that soared to Rs 28,000.


Pharma

Pharma market

show signs of

recovery The Pharma market registered a growth of 6.5%, with sales of Rs 10,376 cr in October after seeing a strong growth in

dermatology and anti-diabetic drugs

The Pharma market showed signs of recovery in October, after months of sluggish growth in the aftermath of the GSTs implementation. The market registered a growth of 6.5 percent, with sales of Rs 10,376 crore in October after seeing a strong growth in dermatology and anti-diabetic drugs, and a turnaround in gastro-intestinal medicines and anti-infective.

Earlier, the market had posted de-growth of 2.4 percent in July, with a weak growth subsequently in August (2.4%) and September (2.8%). During October, volumes grew 5.6% but the price component dragged the market (at-1.7%), according to AIOCD Awacs - a pharmaceutical research firm. The April-October period growth figure was only 4.1 percent, it said, adding this reflected the impact of the run-up to the GST

and its eventual implementation.

From a therapy perspective, it showed a positive growth for October. Sales of anti-infective slightly increased during October (1.6%), while dermatology posted a double-digit growth rate of 13.5 percent, which was better than the previous month. Sales of gastro-intestinal drugs showed a positive turnaround at 7.8%, while vitamins registered an increase of 4.8%. Sales of the cardio segment grew in single digits (7.6%), while central nervous system expanded better compared to previous month (5.7%).

Among the top-10 in the April-October period, only derma (11.6%) and anti-diabetics (13.9%) segment showed a double-digit growth rate. Among the top-10 companies, GSK showed the highest growth at 23.7%, followed by Mankind


Pharma

at 21.1% and Alkem at 13.2%. Overall during the month, 43 companies showed a positive growth among the top 50 which could be a sign of revival, the analysis said. Meanwhile the Pharmexcil is working along with Government of India, industry and research institutions for import substitution as Indian pharma industry now has a significant dependency on imports of Active Pharmaceutical Ingredients (APIs) and intermediates among others. The draft of the proposed new pharma policy has also mooted a provision to keep drugs made from import substituted APIs out of the purview of drug price control for a period of five years.

October exports declineExports declined in October after a six-month high expansion in September as the uncertainty related to goods and services tax (GST) took its toll on shipments, causing the trade deficit to balloon to a near three-year high as imports expanded.

Exports contracted 1.1% in October from a year ago while imports rose 7.6%, data released by the Government showed, yielding a trade deficit of $14 billion in October, highest since November 2014.

Trade deficit was $11.1 billion in October last year and $9 billion in September this year. In absolute terms, India exported $23.1 billion goods in October compared with $23.4 billion a year ago. Imports added up to $37.1 billion in October against $34.5 billion same month last year. Indias exports had risen 25.67% to $28.61 billion in September, logging its highest growth in the last six months. Engineering exports were up 11.8% to $5.9 billion while chemicals and petroleum exports rose 22.3% and 14.7%. Gems and jewellery exports were down 24.5% in October, while pharma shipments declined 8.75%. Gold imports fell 16% to $2.95 billion.


Infra

Indias Road to Success

The largest ever outlay for road construction comes in the backdrop of the National Democratic Alliance (NDA)

government implementing the goods and services tax (GST) which aims to create a common market by dismantling inter-

state tariff barriers

India recently announced an outlay of Rs 6.92 trillion for building an 83,677 km road network over the next five years, which is likely to bring down the logistics cost drastically In order to further optimise the efficiency of movement of goods and people across the country, government is launching a new umbrella program, the government said in a press statement.

The road construction push includes the Bharatmala Pariyojana with Rs 5.35 trillion investment to construct 34,800 km of roads. In addition, Rs 1.57 trillion will be spent on the construction of 48,877 km of roads by the state-run National Highway Authority of India

(NHAI) and the ministry of road transport and highways. The huge spending on infrastructure announced today will give a fillip to private sector investment, the government said.

Govt. to boost Infra spending To expedite the Bharatmala projects, apart from ministry of road transport and highways and state-run firmsNHAI and National Highways and Infrastructure Development Corporation Ltd (NHIDCL)even respective state public works departments (PWDs) will be roped in for timely execution. This in turn will generate 142 million man-days of jobs, the government said.


Infra

Measures today will boost infra spending in a big way, the government added.

To give a boost to the ambitious plan, all future road projects such as economic corridors and coastal roads have been brought under its aegis. The other projects under the marquee scheme include roads providing international connectivity, border roads, roads connecting economically important nodes, green field expressways and the remaining National Highways Development Project (NHDP) works under the scheme launched in 1998 by then Prime Minister Atal Bihari Vajpayee.

Experts welcome the moveWith the implementation of this programme, India could get the much needed cost competitiveness in the manufacturing sector by bringing down the logistics cost which is currently one of the highest among the emerging markets and way above that prevalent in developed economies, research agency CRISIL said.

India needs massive funding to bankroll its new integrated infrastructure programme, which involves building roads, railways, waterways and airports.

To fund the marquee Bharatmala scheme, Rs 2.09 trillion will be raised as debt from

the market, while Rs 1.06 trillion in private investments is being targeted through public private partnerships. In addition, Rs 2.19 trillion will be provided from Central Road Fund (CRF), Toll-Operate-Maintain-Transfer (TOT) projects and toll collections of NHAI.

Govt. working on raising capitalThe government is working on raising capital by monetizing the operational road assets of NHAI that have been built by public funding, a first in the country. The government expects a private investment potential of Rs 34,000 crore from the monetization of these 82 operating highways under the TOT model. The first bundle of 9 NH (national highway) stretches of 680.64 km has been put out to tender by NHAI with potential monetization value of Rs 6258 crore, the statement added.

For projects not covered under the Bharatmala programme, Rs 97,000 crore will be provided by the CRF and Rs 59,000 crore will be provided as gross budgetary support. Prime Minister Narendra Modi has said projects such as Sagarmala and Bharatmala will prepare a strong base for infrastructure development, enabling a person to travel across the country on a single road.


TP3 Global, s u p p l i e r of thermal p r o t e c t i v e covers for the cool chain,

has launched SilverQuilt, a multimodal, next-generation thermal protection.

The SilverQuilt achieves temperature protection for valuable, sensitive cargo, such as controlled room temperature (15C to 25C) pharmaceuticals, due to its specialist composition of multi-layered materials, and is able to protect freight within predefined temperature limits for extended periods during breaks within controlled supply chain lanes. SilverQuilts enhanced performance can provide protection for both +15C to +25C and +2C to +8C pharmaceutical products.

The products construction insulates all areas of the pallet effectively, particularly areas that are at the highest risk of rapid temperature change, such as edges and corners. Its highly reflective outer skin protects against rapid temperature build up when in direct sunlight, extending the protection time when on the tarmac. In addition, SilverQuilt is water resistant and provides resistance against theft. It can also be shipped and delivered cost-effectively due to its compressible design.

The company said: Breaks in the cold chain are a serious issue for the pharmaceutical supply chain, with valuable stock often sitting on the tarmac for hours at a time. With the introduction of SilverQuilt, pharma manufacturers can take a balanced approach, matching cost-effective protection with well managed supply chains.

SilverQuilt undergoes testingPrior to its launch, SilverQuilt underwent testing as part of an extensive research and development process at TP3 Globals advanced technical centre in Redditch, UK. The material was subjected to hot and cold environmental chamber testing, virtual cold chain simulation and thermal resistance (or R-value) testing. The test data, which was compiled by the companys team of packaging technologists, will now be available to customers who undertake a risk-based approach in order to comply with Good Distribution Practice (GDP).

The company said, Our existing products, such as SilverSkin, have achieved a solid reputation in the market, being tested, approved and now used by many of the worlds leading pharmaceutical manufacturers. SilverQuilt is the next logical step to support customers looking to protect controlled room temperature (CRT) freight. It said: With logistics providers improving the quality of controlled supply chain lanes, there are more options to utilise more cost effective thermal protection on palletised cargo. The launch of SilverQuilt arrives at an exciting time as the company continue global expansion and further establish itself as one of the leading providers of thermal protection solutions.

Further it added: The additional launch of the TP3 Technical Centre this year has increased the companys capacity to test materials beyond the identification of an R-value. The data this facility provides will support customer decisions on which insulation materials suit certain lanes, support them in taking a risk-based approach towards GDP and provide documented evidence for quality assurance and best practice.

Technology

Shielding Sensitive CargoThermal cover supplier TP3 Global has launched SilverQuilt, its next-generation solution for the protection of temperature-sensitive cargo

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