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EXPORT POTENTIAL OF SUSTAINABLE GOODS & SERVICES
CONSIDERING ENVIRONMENTALISSUES*
Mohammed Saqib
*The views presented here do not necessarily reflect the views of the Foundation, its officers,
staff, or trustee.
Fellow, Rajiv Gandhi Institute for Contemporary Studies, Rajiv Gandhi Foundation, New Delhi.Author is grateful for the support provided by Sejal Worah, Dennis Palmin and Rajesh Sehgal of WWF.
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TABLE OF CONTENTS
1.Executive Summary 4Purpose and Scope 4
Sample Base 5
Key Findings 6
Ranking of States 7
2.Background Study 10Overview 10
Socio-Economic P ressure 11
Environmenta l Norms: State-wise Explanation 20
Rising Trade and Export Scenario 27
3.The Approach: Methodology 344.Primary Findings 39
EPCs and Industry Associations 41
Indian Companies and Sustainability Process 71
Case Studies: Model Companies 117
5. Recommendation and Conclusions 146
Recommendation 147Conclusions 148
Appendix
List of RespondentsQuestionnaires
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EX ECU T I V E SU MM A RY 0 1
EXPORT POTENTIAL OF SUSTAINABLE GOODS & SERVICES
CONSIDERING ENVIRONMENTAL ISSUES
PURPOSE AND SCOPE:
The main objectives of the research were classified as:
Identifying various companies in different states who are promoting
sustainable development of goods and services.
Understanding importance of environmental issues in trade and
investment.
Understanding degree of inclination of Indian organizations in 6
industrial sectors towards Corporate Social Responsibility and their
involvement towards environmental considerations.
Finding out the ranks of states of India on the basis of their pro-
activeness in promotion of sustainable good and services.
Finding growth in exports of Sustainable goods and services and
thereby understanding its impact on companys market share.
Look into the environmental-friendly business practices that the
companies in various sectors encourage.
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SAMPLE BASE:
For conducting the study, various companies in 6 specific sectors were
identified and their top level managers interviewed. To gain deep insights
into the pro-activeness of different states in India, many industry experts,
members of associations and councils were interviewed. The sample break
up was:
SECTOR SAMPLE CITY
IT 30Chennai, Bangalore
& HyderabadAuto Components 20 Gurgaon, Pune
Steel 5Jamshedpur, Delhi,
Mumbai,
Finance 5 Mumbai & Delhi
Construction (Consultancy) 5 Mumbai & Delhi
Energy Equipment Manufacturers 5 Mumbai & Delhi
Industry Associations & Councils 13 Delhi
Total respondents 83
Separate discussion guidelines/questionnaires were developed for the
organizations and industry associations and export promotion councils. The
distribution of sample was selected in consultation with the client across
India.
The list of companies, associations and councils interviewed for the study arementioned in the Annexure.
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KEY FINDINGS:
India is one of the fastest growing economies of the world and will play
a major role in future. The huge population which was a burden until
few years ago is presently its biggest asset. However this asset is
putting a tremendous pressure on the natural resources and bio-
diversity of the country.
Industries are slowly shifting towards production and export of
sustainable goods and services but the rate is quite slow.
Developing countries like India, where most of the resources are spentin meeting the daily needs and where the competition is so high even
at the grass root level, the companies think that they dont have the
luxury to concentrate too much on environmental considerations.
According to most of the sectors, India has a deficit of the required
resources and the available resources are also not efficiently used.
This is one of the biggest concerns for the country.
The government has still not been able to fix a benchmark for all the
sectors regarding environmental regulations that need to be followed.
Sectors like finance and IT have been facing problems with an
improper benchmark to follow.
Technologies to reduce environmental pollution are very expensive for
most of the companies.
Karnataka, Maharashtra and Delhi have been ranked as top three
regions which are proactive towards environment.
Majority of the companies across India follow Environmental norms as
it is mandatory while dealing with international clients.
Only few companies were of the view that considering environmental
issues helps them to deliver value to their stake holder groups.
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RANKING OF STATES:
Effective management of resources requires participation by all stakeholders.
At the local level, strengthening democratic institutions generally leads to
better and more sustained management of natural resources. Sustainable
development is achieved through optimizing gains from several variables,
rather than maximizing those from a single one. This requires government
departments, by convention sectorally organized, to work together, or in
some cases as a single multi-disciplinary authority. The governance must be
strengthened for sustainable development at local, national and international
level.
Thus, the study found the level of pro-activeness of separate regions of the
state. For this purpose, the councils and industry associations in India were
asked to rank the regions of India on the basis of the degree of inclination
towards environmental issues and sustainable development.
On analyzing the data collected from 10 councils and associations of India, it
can be seen that Karnataka is the leader occupying the top slot. This is
followed by Maharashtra and Delhi NCR. The top regions in India as per
Council and Industry Associations perception are mentioned in the table
below:
RANK STATES
1 KARNATAKA
2 MAHARASHTRA
3 DELHI / NCR
4 GUJARAT
5 TAMIL NADU
6 ANDHRA PRADESH
7 UTTAR PRADESH
8 HARYANA
9 WEST BENGAL
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BACKGROUN D STUDY 0 2
India is the 7th largest country of the world with an area of 3.29 million sq
km. It is one of the densely populated countries of the world with a
population of over 1 billion. Though agriculture contributes less than 24% of
the GDP, it employs the maximum working population of the country. The
economy is growing at a rate of over 8%. India a nuclear power is
considered as one of the fastest growing markets of the world.
For India, a large country both populated and poor, to develop in an
environmentally sustainable development is not an option but a requirement.
On one hand, India is faced with environmental degradation from poverty
and population pressures, and on the other, from pollution from increased
activities due to economic growth and the consequent change in consumption
patterns. While the poor depends on the environment for their livelihood, the
process of economic development relies on using natural resources to
SUSTAINABLE
DEVELOPMENT IN INDIA
SUSTAINABLE DEVELOPMENTSTANDS ON THREE PILLARS:ECONOMIC, SOCIAL ANDENVIRONMENTAL.
SOCIO-ECONOMIC PRESSURES ON THE ENVIRONMENT
POLLUTION NORMS OF STATES
RISING TRADE & EXPORT SCENARIO
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produce goods and services. The waste generated from consuming and
producing these goods and services are in turn released back into the
environment impacting it. The environment provides security for present and
future generations, the health of the environment is closely connected with
the health of humans, and it is economically beneficial for countries to
prevent environmental degradation. The challenge therefore, in making
development compatible with the environment is to restructure the economic
system in a way that it will not destroy the environment as economic
progress continues.
Sustainable development attempts to strike a balance between the demands
of the economic development and the need for the protection of the
environment. A better explanation of the term can be explained by the Venn-
diagram:
Source: en.wikipedia.org/wiki/Sustainable_development
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Environmental sustainability is
defined as the ability of the
environment to continue to
function properly indefinitely.
The goal of environmental
sustainability is to minimize
environmental degradation, and
to halt and reverse the
rocesses the lead to*.
SUSTAINABLE DEVELOPMENT CONSIDERING ENVIRONMENTALISSUES: AN OVERVIEW
Sustainable Developmentas defined by
Brundtland Commission, is "the meeting of
the needs of the present without
compromising the ability of future
generations to meet their own needs". A
rapidly changing population resource equation,
in the face of poverty, and lack of resources
create formidable social and environmental
problems at national and global levels. Thus,Environment Sustainability in this context:
Consumption of renew able State of environment Sustainability
More than nature's ability to replenish Environmental degradation Not sustainable
Equal to nature's ability to replenish Environmental equilibrium Steady-state
Sustainability
Less than nature's ability to replenish Environmental renewal Sustainable development
Table: Indias Development I ndicators
Indicator Value
Human Development Index 2003 (rank) 0.602 (127)
Human Poverty Index 2003 (rank) 31.3% (58)
Environmental Sustainability Index 2005 * 45.2 (101)
GHG Emissions 1994 1,228,540 Giga gram per year; 1.3
tons per capita
GDP and GDP per capita (2002-03) Rs. 36480 billion, Rs. 29382 per
year.
*Source: http//www.yale.edu/esi/
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As India has only 2.4% of the
worlds total landmass, the
population density is at 324
persons per square kilometer
(Census 2001) and pressures
on the environment are
correspondingly high.
SOCIO-ECONOMIC PRESSURE OF SUSTAINABLE DEVELOPMENT WITH
SPECIAL EMPHASIS ON ENVIRONMENT IN CONTEXT OF INDIA
Sustainable development receives various pressures on various grounds
which can be summarized under the following heads:
The key socio-economic pressures on the environment such as population,
poverty, illiteracy, economic growth, changing consumption patterns,
deforestation, biodiversity, air and water pollution, climatic change and
trends of urbanization pose pressure on India forsustainable development.
2.1(a) P opulation
India, the second largest populous country, is home to
over 16 percent of worlds population while
accounting for only 2.42 per cent of the total world
area. By the year 2025 Indian population may cross1.4 billion. Demographic growth of such dimension
creates enormous pressure on environmental resource
base and ecosystems. It will cause serious socio-
economic problems and will necessitate breaking from
the businesses-usual scenario. The significance of
population pressure is great as it impedes both
development and environmental health.
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2.1(b) Deforestation
India has very diverse forest vegetation recording an area of76.52 million
hectors - 23.3 per cent of the total geographical area - while the actual
forest cover is 63.3 million hectares - only 19.3 per cent of the total land
area of which only 11.2 per cent of the area has forest with a crown density
of greater than 40% .
Pristine, untouched prime forests of the country have
steadily declined and are estimated to be not more
than 3% of the countrys land area, reflecting a
qualitative decline of the forests in the country. The
forest wealth is dwindling due to:
Illicit tree felling
Overgrazing
Encroachments
Forest fires
Ind iscriminate execution of development
projects in the forest areas.
2.1(c) Biodiversity
Biodiversity, an essential component of our life support system, is a
collective term that encompasses the variety of all-living organisms - plants,
animals, micro-organisms on the earth who act collectively in the functioning
of nature and in maintaining ecological balance.
As India has only 2.4% of the
worlds total landmass, the
population density is at 324
persons per square kilometer
(Census 2001) and pressures
on the environment are
correspondingly high.
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India is one of the twelve mega-diversity centres in the world with 46,000
plants and8,000 animal species. With only 2.4 per cent of the worlds
land area, Indian biodiversity contributes 8% of the known global
biodiversity. However, our biodiversity is under increasing threat from
Habitat loss
Reckless over-exploitation
Trade in w ildlife products
Poaching
Smuggling
According to estimates over 1500 plant species, about 79 mammals, 44
birds, 15 reptiles, 3 amphib ians and several insects are endangered
species.
2.1(d) Land and soil degradation
Out of the total Indian geographical area of 329 million hectare, 175
million hectare is considered degraded. Degradation is primarily caused
through erosion by wind and water. Increased silt load leads to speedy
deposition of silt in the dams and reservoirs. Increased emphasis on
intensive agriculture and over irrigation has resulted in water logging and
reduction in the quality of the fertile areas of the country.
2.1(e) Fresh water
As populations grow and water use per person rises, demand for fresh water
soars. But the supply of fresh water is finite and threatened by pollution.
Evidence of water stress can be seen, as rivers are drained dry.
In many parts of the country polluted water, improper waste disposal, and
poor water management causes serious public health problems. Water levels
are falling in every state particularly over large parts of Punjab and
Haryana due to excessive abstraction of irrigation. In the coastal belt of the
country groundwater is becoming progressively saline due to salt-water
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intrusion. Access to safe drinking water, thus remains an urgent need for the
public and a headache for the governing bodies. 85 per cent of the
population in the urban areas and 79 per cent in rural areas still do not
have access to safe drinking water.
2.1(f) Energy
Indias energy development programme has been put to severe pressure
with the ever increasing demand supply gap and mismatch of resources
coupled with non-uniform growth curve. The challenge faced by India in the
management and development of the power sector is multi-dimensional and
they stem fundamentally from the following:-
Increase in demand for energy due to rapid industrialization and growing
population.
Constraint of financial resources for enhancing this infrastructure facility.
Limited reserves of coal and fossil fuels and consequent burden on foreign
exchange due to increasing imports.
Increased emphasis needs to be paid to promote energy efficiency as well as
to develop renewable energy resources for promoting sustainable
development.
Economic Burden due to Energy, Water, Sanitation and Hea lth Problems per year.Source: Parikh J et.al, 2002
Energy (a) Water (b) Total(a+b)
W orking day spent in fuel and w ater collection and w ork days lost due to ill
health ( Rs. Millions)I No. of adult working days spent in fuel
wood gathering and water collection2950 11519.7 14469.7
II Adult working days lost due to diseases 833(Respiratory &Eye related)
1268 (Water &Sanitationrelated)
2101
Direct expend iture on he alth by ad ults ( Rs. Billions)III Expenditure on health by adults due to
diseases66.56(Respiratory & Eye related)
32(Water &Sanitationrelated)
98.56
Total economic loss due to improperenergy and water facilities and due tohealth impacts or their procurement &use
293.54 799.26 1092 .8
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The socio-economic costsof water pollution areextremely high: 1.5million children under 5yrs age die each yr. due
to water related diseases,200 million person days ofwork are lost and thecountry loses aboutRs.36,000 crores each yr.Given this, we must aimat water security forpresent and futuregenerations, make wateravailable to all andpreserve its quality.
2.1(g) Air pol lution
Air pollution has been growing since the economic development gained
momentum. Rapid industrialization, escalating cities and greater dependence
on fossil fuels have contributed to the growing menace. Vehicular traffic is
the most important source of pollution in all the mega cities. The most
prevalent form of air pollution is a high level of Suspended Particulate Matter
(SPM), high concentration of Sulphur dioxide (SO2) and CO2 which occur in
about 20 per cent of the cities.
Air pollution in India is worsening by the day, as many urban areas are
becoming lethal gas chambers. Delhi, the capital city, is globally the fourth
most polluted city. The exceptional surge in the number of vehicles accounts
for approximately 64% of the total pollution load of Delhi. The situation in
other cities and towns is no better.
2.1(h) W ater pollution
Water-water every where but not a drop to drink.
Drinking Water is slowly turning from a renewable source
to a non-renewable one. The major causes for this
change have been:
Urbanization
Industrialization
Over withdrawal of water
Agricultural run-off
Public apathy
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Water Availability
3450
1288 1250
760
1951 1991 1999 2050Year
C
u.m
/person/year
UTILIZABLE WATER PER CAPITA ISDECREASING* This level of pollution is set to createconflict over water and scarcity even
in regions with abundant water (TERI
vision, 2001). Water per capita would
decrease to 760 by 2050**.
The major water polluting industries
include fertilizers, refineries, pulp &
paper, leather, metal plating and other
chemical industries.
Most of
the Indian water bodies are heavily polluted
with large stretches of most of our rivers
having water that is unsafe for drinking
purpose. With rapid urbanization and
industrialization huge quantities of waste
water enters rivers. The Ministry of Water
Resources, September 2007 report on
artificial recharge of ground water stated that out of a total of 5723
assessment units (Blocks/Mandals/Talukas) in the country, 839 have been
categorized as Overexploited, with ground water extraction in excess of the
net annual recharge. There are also 226 Critical assessment units where
the ground water draft is between 90 and 100 percent of the annual
replenishment, apart from 30 blocks having only saline ground water. Our
facilities to treat wastewater are woefully inadequate. In class I cities, only
5% of the total wastewater is collected of which only 25% is treated. More
than half the cities have no sewage system.
**Source:Central Water Commission (CWC) 1998, Water Statistics of India, Delhi,
India: Central Water Commission.
84%
12%
4%
Water Use
Agriculture
Industry
Domestic
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2.1 (i) Solid w astes
In India, the current per capita waste generation is very low vis--visadvanced countries, though the actual quantum of waste is large owing to
enormous size of our population. In actual quantum, plastic waste alone has
increased tremendously over the last few years.
The mode of waste disposal predominantly remains through land filling, a
conventional but unhygienic method. Alternative modes like composting and
other scientific approaches are sparsely used. An inadequate collection and
disposal of such wastes, pollutes and degrades land and water resources
besides being a health hazard.
2.1 (j) Urban trap
The population in Indian cities is growing at twice the rate of the average
growth of the countrys population. India may be a rural country but it has
one of the worlds largest urban populations. The state of cities and towns is
appalling and is worsening at a rapid pace. Most basic services like cleandrinking water, sanitation, solid waste disposal, transport and health facilities
are crumbling under increasing population pressure besides inadequate
housing.
As countries industrialize one sees cities grow and traffic increase. This may
reflect rapid economic development and industrialization but also results in
high levels of energy consumption and emissions. The progress of
urbanization is relatively slow in India compared to other developingcountries and the bulk of the population continues to live in rural areas. The
urban population increased from 19% of the total population in 1965 to 28%
in 2000. It is expected that more than 50% of population in India will reside
in urban areas by 2025.
This has led to congestion of cities, proliferation of private vehicles, increased
energy usage and increased pollution. The transport sector accounts for a
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major share of consumption of petroleum products in India. Transportation
sector is responsible for a large share of air pollutants. Therefore, in order to
develop sustainably greater emphasis needs to be placed on developing good
public transport systems.
2.1 (k) Climate change
Over the last half century, carbon emissions from fossil fuel burning
expanded at nearly twice the rate of population growth, boosting
atmospheric concentrations of carbon dioxide, the principal greenhouse gas,by 30% over pre-industrial levels. Fossil fuel use accounts for roughly 3/4th
of world carbon emissions. Annual emission of carbon dioxide from industrial
countries is currently twice as high as from developing ones. Emissions from
developing countries will nearly quadruple over the next half century, while
those from industrial nations will increase by 30% , according to the
Intergovernmental Panel on Climate Change. In spite of the Climate Change
Convention adopted at the Rio-de-Janeiro in 1992, the global carbon dioxide
emission has been rising steadily. This is in sharp contrast with the Montreal
Protocol, which has received considerable success in cutting down the
emission of CFCs and other ozone destroying substances.
The situation is grave and needs to be quickly addressed before the whole
system destabilizes and leads to mass extinction.
2.1 (l) Economic Growth
Some economists say that India is shining. Over the last year the Indian
economy has shown good growth rates, low inflation rate, falling interest
rates and robust export growth. Just like poverty, economic growth also
Source: Sustainable development: Integrating economic and ecological concerns
By: C.K . V arshney
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leads to pollution, albeit of a different kind. The impact of this growth on
environment depends on three major aspects: first is the structure of GDP,
second is the change in consumption patterns of the population, and the
third is environmental governance.
Share of agriculture (bedrock of India) in the total GDP has been declining
over the years from over 50 per cent in the early 1950s to 26 percent in
recent years. At the same time the shares of manufacturing, transportation
and banking and service sectors have doubled in last 50 years (Economic
Survey 2003).
The rise in the service sector share is encouraging as it is environmentally
less intensive than the other two sectors. This change is stimulated by
liberalization and the rapidly increasing outsourcing of software and IT
enabled services by foreign companies. Some of this has to do with the
change in domestic consumption patterns as well, for instance the restaurant
industry has taken off in the last ten years employing many.
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ENVIRONMENTAL NORMS:
STATE WI SE EXPLANATI ON
The three specific Acts that are being implemented and broadly supervised
by CentralPollution Control Board (CPCB) and followed by all the State
Pollution Control Board(SPCB) are:
1. The Air (P revention & Control Of Pollution) Act, 1981:
This is an Act to provide for the prevention, control and abatement of
air pollution in the country so as to preserve the quality of air. Central
and State Boards constituted under section 3 and 4 of Water
(Prevention and Control Pollution) Act, 1974 were deemed also as
Central and State Boards for Prevention and Control of Air Pollution.
2. The Water (Prevention & Control of Pollution) Act, 1974.
[Act No. 6 Of 1974]:
This Act was enacted for prevention and control of water pollution and
maintaining or restoring of wholesomeness of water. The Central and
State Pollution Control
Boards have been constituted under section 3 and 4 of the Act
respectively. The Act was amended in 1978 and 1988 to clarify certain
ambiguities and to vest more powers in Pollution Control Board.
"Environmental problems are really social problems.
They begin with people as the cause, and end with
people as victims. They are usually born of ignorance
and apathy. It is people who create a bad environment
and a bad environment brings out the worst in people.
Man and nature need each other, and by hurting one we
wound the other......" Edmund Hillary (Ecology 2000)
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3. The Environment (Protection) Act, 1986:6
This is an Act to provide for the protection and improvement of
environment and for matters connected there with. This is comprehensive
umbrella legislation.
Salient feature are:
i) Central Govt. or any officer delegated by it has been vested
with
more powers
ii) Hazardous wastes (Management & Handling Rules), 1989 (as
amended in 2000)
iii) Hazardous chemicals (Manufacture, Storage & Import of
hazardous
Chemicals) Rules, 1989
iv) Biomedical Waste Rules 1998 (as amended)
v) Environmental Statement
One special feature of EP Act 1986 is provision of taking cognizance of
offence in court of law by any person after giving notice of 60 days to CentralGovt.
vi) Other related rules of EP Act are:
a) Manufacture Use Import Export and Storage of Genetically
Engineered
Micro-organisms or cell.
b) Scheme of labeling Environment friendly product
('ECOMARK')
c) Coastal Zones Regulation notifications i.e. to restrict certain
developmental activities along the coastal zone.
4. The Water (Prevention & Control of Po llution) Cess Act, 1977:
This is an Act to provide for the collection and levy of cess with a view to
augment the resources of Pollution Control Board.
i) The Act is applicable to all states where Water (Prevention &
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Control of Pollution) Act is in force except J & K.
ii) The cess is payable by every person carrying on any industry
and using water for various purposes as prescribed under
Schedule - II of the Act.
iii) The cess is based on water consumption, quality and purpose for
which water is used.
The various environmental regulations specific to the concerned states are as
follows:
S.NO. STATESENVIRONMENTAL NORMS
1.
UTTAR
PRADESH
Uttar Pradesh Pollution Control Board
o Prevention and Control of Environmental Pollution.o Penalty for Contravention of the Act.o Environment Impact Assessment Rules 1994.
2.
HARYANA
Haryana State Pollution Control Board (HSPCB)
o
Hazardous Wastes (Management and Handling) Rules,1989
o Bio-Medical Waste (Management and Handling) Rules,1998
o Municipal Solid Waste (Management and Handling)Rules, 2000
o Re-Cycled Plastic Manufacture & Usage Rules, 1999o Noise Pollution Rules, 2000o Manufacture, Storage and Import of Hazardous
Chemical Rules, 1989o The Environment (Protection) Rules-Emission
Standards for D. G. SE Batteries Rules, 2000
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3.
TAMILNADU
Tamil Nadu Pollution Control Board(TNPCB)
o Manufacture, Use, Import, Export and Storage of
Hazardous Micro -organism Genetically EngineeredOrganisms or Cell Rules, 1989.
o The Chemical Accidents (Emergency Planning,Preparedness and Response) Rules, 1996.
o The Recycled Plastics Manufacture and Usage Rules,1999 as amended in 2003
o The Batteries (Management & Handling) Rules, 2001
4.
ANDHRAPRADESH
Andhra Pradesh Pollution Control Board (APP CB)
o Manufacture, Storage and Import of Hazardous
Chemical Rules, 1989o Manufacture, Use, Import, Export and Storage of
Hazardous Micro-organism Genetically EngineeredOrganisms or Cell Rules, 1989.
o Coastal Regulation Zoneo Bio-Medical Waste (Management and Handling) Rules,
1998o Recycled Plastics Usage Rules, 1998 (Draft)
5.
MAHA
RAS
HTR
A
Maharashtra Pollution Control Board (MPCB)
o
Biomedical Waste (M&H) Rules, 1998
o Hazardous Waste (M&H) Rules, 2000o Municipal Solid Waste Rules, 2000
6.
GUJARAT
Gujarat P ollution Control Board (GPCB)
o The Hazardous Wastes (Management & Handling)Rules, 1989
o The Manufacture, Storage and Import of HazardousChemicals Rules, 1989
UTTAR PRADESH:
Uttar Pradesh Pollution Control Board (a statutory organization
entrusted to implement Environmental Laws and rules within the jurisdiction
of the state of Uttar Pradesh, India) looks after the pollution and
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environmental norms of the states. The various acts enacted under the
supervision of the Board are listed below:
Prevention and Control of Environmental Pollution.
Penalty for Contravention of the Act.
Environment Impact Assessment Rules 1994. IABILITY
INSURANCE
HARYANA:
Haryana State Pollution Control Board (HSPCB) performs its regulatory
duty under the supervision of Central Pollution Control Board. The Acts thatare supervised by the board are as follows:
Hazardous Wastes (Management and Handling) Rules, 1989
Bio-Medical Waste (Management and Handling) Rules, 1998
Municipal Solid Waste (Management and Handling) Rules, 2000
Re-Cycled Plastic Manufacture & Usage Rules, 1999
Noise Pollution Rules, 2000
Manufacture, Storage and Import of Hazardous Chemical Rules,
1989
The Environment (Protection) Rules-Emission Standards for D.
G. SE Batteries Rules, 2000
TAMIL NADU:
Tamil Nadu Pollution Control Board (TNPCB), established in 1982,
functions with Head Office at Chennai. The different norms followed explicitly
by the board are:
Manufacture, Use, Import, Export and Storage of Hazardous
Micro -organism Genetically Engineered Organisms or Cell
Rules, 1989.
SOURCE: 1. UTTER PRADESH POLLUTION CONTROL BOARD website: www.uppcb.com
SOURCE:
2. HARYANA STATE POLLUTION CONTROL BOARD website: www.hspcb.gov.in3. TAMIL NADU STATE POLLUTION CONTROL BOARD website: www.tnpcb.gov.in
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The Chemical Accidents (Emergency Planning, P reparedness
and Response) Rules, 1996.
The Recycled Plastics Manufacture and Usage Rules, 1999 as
amended in 2003
The Batteries (Management & Handling) Rules, 2001
The board follows all the norms followed by Haryana Pollution Control
Board except:
i) Re-Cycled Plastic Manufacture & Usage Rules, 1999
ii) The Environment (Protection) Rules-Emission Standards for
D. G. SE Batteries Rules, 2000. ***
ANDHRA PRADESH:
The Andhra Pradesh State Board for Prevention and Control of Water
Pollution was constituted on 24-01-1976. After implementation of Air
(Prevention and Control of Pollution) Act, 1981, the Boards name was
changed as Andhra Pradesh Pollution Control Board (APPCB). The
norms that are supervised by the board for the companies under this statecan be summarized as follows:
Manufacture, Storage and Import of Hazardous Chemical Rules,
1989
Manufacture, Use, Import, Export and Storage of Hazardous
Micro-organism Genetically Engineered Organisms or Cell
Rules, 1989.
Coastal Regulation Zone: Coastal Zone Management Plans of
Andhra Pradesh identifying and categorizing the coastal areas up to
500 meters from the high tide line were prepared as per the provisions
of Coastal Regulation Zone (CRZ) Notification 1991.
Bio-Medical Waste (Management and Handling) Rules, 1998
Recycled Plastics Usage Rules, 1998 (Draft).
SOURCE:
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MAHARASHTRA:
Maharastra Pollution Control Board (MPCB) is functioning under the
administrative control of Environment Department of Government of
Maharastra. The acts that are regulated by it are the same as followed by the
other states under the broad perspective of Air Act (1981), Water Act
(1974) and Environment Act (1986). Along with this there are also some
rules as mentioned for other states which are looked after by MCPB like:
I. Biomedical Waste (M&H) Rules, 1998
II. Hazardous Waste (M&H) Rules, 2000
III. Municipal Solid Waste Rules, 2000.
GUJARAT:
The Government of Gujarat constituted the Gujarat Pollution Control
Board(GPCB) on 15-10-1974 with a view to protect the environment and
to prevent and control the pollution of water in the State of Gujarat, whichoccupies a prominent niche in sustainable industrial development in the
country. Other than following the three important acts the rules that the
board supervises are as follows:
The Hazardous Wastes (Management & Handling) Rules, 1989
The Manufacture, Storage and Import of Hazardous Chemicals
Rules, 1989
4. ANDHRA PRADESH POLLUTION CONTROL BOARD website: www.appcb.org
5. MAHARASHTRA POLLUTION CONTROL BOARD website: www.mpcb.mah.in
SOURCE:
GUJARAT POLLUTION CONTROL BOARD website: www.gpcb.gov.in
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RISING TRADE AND EXPORT SCENARIO
During the larger part of the post-reform period (1993-2005), Indias pace of
export growth has not been significantly higher though it has accelerated
since 2002. In comparison to the pre-reform period (1950-90), the actualgrowth of exports in the post-reform period has been above the expectation
primarily because of growth of world demand.
The export policy introduced within the economic reforms in 1991 primarily
focuses on the exchange rate. A major element of this policy shift was the
downward adjustment in the exchange rate of the rupee against the major
currencies in July 1991. Further, in 1993, the government adopted full
convertibility of the rupee on the current account.1
Export Trends in Pre-Reform Period: Brief Overview
Exports were largely neglected during the first and the second five-year plans
(1952-1956 & 1957-1961), because there was a perception that demands for
Indian exports was inelastic. Whilst the world merchandise export was growing
at 6.3% per annum during the 1950s, Indias export stagnated (Table 1). As the
world merchandise exports expanded relatively faster during the 1960s at 8.8%
per annum, the growth rate of Indias exports improved somewhat to 3.6% per
annum. Clearly, the country failed to make the best use of the trade possibilities
available during the 1950s and 1960s. The share of Indias exports in world
exports declined sharply from 1.4% during the 1950s to 0.9% during the
1960s. In order to offset the detrimental effects of overvalued exchange rates
and other government policies on exports, various implicit and explicit measures
of export subsidization were adopted. World exports registered a hefty growth
FINDING THE PATH TO SUSTAINABLEDEVELOPMENT AND GROWTH IN INDIA: EXPORT
POTENTIAL.
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rate of 20.4 per cent per annum during the 1970s. Buoyancy of world demand
and a relatively favorable domestic policy provided a market conducive to a
rapid growth of exports from India. It results in the growth of Indias exports of
merchandise and services at the annual rate of about 18% and 27%
respectively during the 1970s. Joshi and Little (1994), while recognizing the
importance of world demand, explained that the export growth of the 1970s was
mainly due to the depreciation of the real effective exchange rate REER****,
provision of export subsidy and a relatively liberal import policy for export
production. Despite the high growth, Indias share in world merchandise exports
declined to 0.5% during the 1970s from 0.9% during the 1960s.
The growth rate of world exports turned negative in the aftermath of the second
oil price hike, which had its automatic effect on Indias exports which
decelerated sharply. During the second half of the 1980s, however, the world
economy recovered and Indias exports grew at a healthy pace of 17.8%).
According to Joshi and Little (1994), there was a genuine improvement in the
export competitiveness of India during this period due to a major depreciation of
the REER and increased export subsidies. The capital goods import also
witnessed some doses of industrial deregulation and liberalization.
****Clarification1. The system of partial convertibility introduced in 1992 established a dualexchange rate for the rupee, which allowed exporters to sell 60 per cent of theirforeign exchange in the free market and 40 per cent to the government at the lowerofficial price. The official and market exchange rates were unified with theintroduction of full convertibility.2. REER is the weighted average of a country's currency relative to an index orbasket of other major currencies adjusted for the effects of inflation. The weights aredetermined by
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Trends and Patterns of Exports in Post-Reform Period
The process of economic reforms became far more comprehensive and
systematic after a severe balance of payment crisis in 1991. Significant reforms
were witnessed in terms of removal of state controls on domestic and foreign
investment, foreign trade, prices and exchange rates. These reforms were made
with the expectation that there would be much efficient resource allocation,
greater specialization, diffusion of international knowledge and heightened
competition. But Indias export growth didnt react to such reforms in a positive
manner. It had accelerated since 2002.
The post-reform period (1993-2005) is divided into three sub-periods: 1993-97
(the period before the East Asian crisis); 1999-2001 (the period immediately
after the crisis); and 2002-05 (the period of rapid export growth).
Growth of Exports
During 1993-97, Indias merchandise exports recorded a growth rate of about
13% per annum and services exports showed a comparable growth rate of
about 14% per annum (Table 1) in spite of the appreciation of the REER by
about 1 per cent per annum. Table 2 shows that the merchandise export growth
during this period was, by and large, broad-based with double-digit growth in
most of the commodity groups. Within the services sector, the growth rate of
exports was the highest for the group miscellaneous (which includes software)
followed by insurance (Table 3). As a result of the slowdown in world demand
triggered by the crisis in east Asia, merchandise exports of India (and of the
world) in 1998 declined in absolute value from the level in the previous year,
Even in the phase of depreciation of REER of the rupee by more than 6 per cent
between 1997 and 1998. Indias exports showed signs of recovery during 1999-
2001 by growing by about 10 per cent per annum. The growth rate of
merchandise exports declined to about 7.6 per cent if petroleum (SITC 33)
exports, which skyrocketed from $ 55 million in 1999 to $ 1,929 million in
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2000 are excluded from the total. As the world economy fully recovered after
the Asian crisis, Indias merchandise exports showed a high growth rate of about
25 per cent per annum during 2002-05 (22 per cent if petroleum exports are
excluded). In particular, services exports showed exceptional performance,
growing at the rate of 45 per cent per annum. The growth was broad-based with
almost all the commodity groups (except SITC 9) and services sectors showing
double-digit growth rates (see Table 2 and Table 3). It is significant that this
high growth occurred despite the appreciation of the REER by about 1 per cent
per annum during the period. The latest (provisional) data indicates that the
growth momentum of the previous four years continued, by and large, in 2006.
The cumulative value of Indias merchandise exports during April-March 2006-07
was $ 124.6 billion (provisional) as against $ 100.6 billion (provisional) in
2005-06. The growth rate of merchandise exports in 2006-07 over the previous
year on a like to-like basis is 23.8 per cent. This has been attained in spite of
the appreciation of the REER by about 2.8 per cent during April-January of
2006-07.
In sum, Indias exports during the post-reform period have been growing fasterthan the rate of growth of world exports. This is in contrast to the pattern
observed for the pre-reform period, particularly during 1950-80. It appears that
the growth of world demand is the most important determining factor of Indias
merchandise export growth for both the pre- and post-reform periods. The
strong correlation of Indias exports with world exports during the post-reform
period is evident from the figure.
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Table 1: Indicators of Indias Export Growth, 1950-2005
( US $ millions)
Period
Average Annual Growth
Rates (a)
Indias Share in
World Exports
Averages
Indias Exports
In Goods and
Services (Per
Cent of GDP),
AveragesGoods Services (b) Goods Services
1950-59 0.22 6.30 3.78 NA 1.39 NA NA
1960-69 3.58 8.77 1.78 NA 0.90 NA 4.21
1970-79 17.97 20.41 26.61 NA 0.54 NA 5.20
1980-85 2.39 -0.86 3.79 0.36 0.47 0.81 6.05
1986-90 17.76 12.36 10.47 14.14 0.48 0.63 6.29
1993-97 13.30 10.56 14.10 9.22 0.60 0.59 10.50
1999-01 10.26 4.09 9.52 3.07 0.66 1.07 12.52
2002-05 25.29 17.58 45.36 15.16 0.81 1.64 17.19(c)
Notes
A: Growth rates are calculated using semi-logarithmic regressions.
B: Services represent commercial services excluding government services.
C: Exports (per cent of GDP) for the year 2005 was extrapolated based on the
trend for the previous three years (the average for 2002-04 was 16.08).
Source: Data on merchandise exports (for 1950-2005) and services exports
(from 1980-2005) have been accessed from the WTO website; Indias services
exports for 1950-79 are from the RBI; Exports of goods and services (per cent
of GDP) are taken from the World Development Indicators database, World
Bank.
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Table 2: Indias Merchandise Exports across Commodity Groups,
Average Annual Growth Rates
SITC (Standard International Trade Classification)
Code Commodity Group 93-97 1999-2001 2002-05
0 Food and live animals14.42 5.92 11.44
1 Beverages and tobacco 23.44 -12.54 13.71
2 Crude materials,
inedible, except fuels 12.56 8.85 51.12
3 Mineral fuels,
lubricants and related -4.14 403.01 66.65
4 Animal and vegetable oils
and fats14.49 -16.35 23.07
5 Chemicals20.41 13.61 26.85
6. Manufactured goods classifie
chiefly by material9.70 2.74 19.27
7 Machinery and transport
equipments 17.10 22.19 35.47
8 Miscellaneous
manufactured articles9.82 5.55 20.72
9 Commodities and
transactions not
classified according to kind
17.58 26.54 -3.09
Source:COMTRADE-WITS (authors calculations). To compute the growth rates of total
exports in the last two rows, export values of SITC 33 and SITC 9 (reported in
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COMTRADE) are subtracted from the total exports (reported in WTO). The WTO data on
total exports are used so that these growth rates are comparable with the ones in Table
1.
We use the WTO data in Table 1 as it gives a longer time series (from 1948) than
COMTRADE-WITS (from 1962)
Table 3: Indias Services Exports across Sectors, Average Annual
Growth Rates
Sector 1993-9 1999-20 2002-05
Travel 7.67 1.65 33.25
Transportation 6.57 12.51 36.40
Insurance 18.26 11.66 47.22
Miscellaneous 25.99 4.26 49.81
Miscellaneous of which
softwareaNA 7.27a 35.29
Total
commercial servicesb13.96 4.83 45.59
Notes: a Value of software for the year 1999 was estimated based on the share of
software in miscellaneous in 2000 (RBI has been reporting separate data on software
exports from the year 2000 onwards).
b Exports of Government not included elsewhere (Gnie) is excluded.
Source: Reserve Bank of India
Source of report :Sources of Indias Export Growth inPre- and Post-Reform Periods by C. Veeramani
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T H E A P P R O A CH : M E T H O D O L O G Y 0 3
UNDERSTANDING THE EXPORT POTENTIALITY OF SUSTAINABLE
GOODS & SERVICES FROM I NDIA, TAKING ENVIRONMENTAL I SSUES
INTO CONSIDERATION
1a. Purpose and Scope of the Study
The prime objective of the study was to analyze the current growth scenario
of exports of sustainable goods and services and its potential in India.
Under the purview of the study, we have attempted to investigate various
players in the six industry sectors prevalent and experts from associations
and councils to understand the export potential of sustainable goods and
services considering environmental issues in the most comprehensive mode
possible. On the basis of a secondary research done at the initiation of the
study, a primary research plan was developed to understand the dynamics of
sustainable development and environmental issues in trade and investment.
The main objectives of the study include:
Identifying various companies in different states who are promoting
sustainable development of goods and services.
Understanding importance of environmental issues in trade and
investment.
Understanding degree of inclination of Indian organizations in 6
industrial sectors towards Corporate Social Responsibility and their
involvement towards environmental considerations.
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Finding out the ranks of states of India on the basis of their pro-
activeness in promotion of sustainable good and services.
Finding growth in exports of Sustainable goods and services and
thereby understanding its impact on companys market share.
Look into the environmental-friendly business practices that the
companies in various sectors encourage.
1b. Empirical Methods:
The study uses a mix of research methods to address the challenges of
limited data availability. The findings reported here are based on in-depth
interviews with various decision makers across the industry players in the
market and other members of associations and councils.
These interviews lasted for about an hour (with top level managers of
organizations and industry experts) and have been conducted over a period
of 60 days. These interviews were conducted at top level within the
organizations and members of councils, depending on the availability and
resourcefulness of the concerned person.
It was made sure that the sample chosen is the representative of the whole
industry. For the sake of simplicity and uniformity, we followed a
questionnaire to serve as a guideline for the interviews and information
obtained. The interviews focused on the agenda of their understanding about
sustainable development and tried to identify the companys involvement in
promoting export of these goods and services. The interviews were kept
partially open ended to capture as much information as possible and to boost
the exploratory nature of the research. The close ended parts were restricted
to maintain the commonality between the various respondents. Separate
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questionnaires were prepared for the different respondent groups
(Companies, Associations and Councils).
The survey tried to extract:
their understanding of sustainable development and thus find out the
degree of importance of environmental considerations for the
company.
export potential of sustainable goods and services and impact on
companys market share.
the industry trends in exports of sustainable good and services,
encouragement of environment-friendly business practices,
adherence to certifications and schemes,
compliance to environmental laws and judicial decisions,
their perspective on governments initiative to promote investments in
export of such goods and services.
We tried to get the maximum proportional coverage by covering major
sectors and experts in the industry. On the other hand, we incorporated
various angles like that of companys perception towards potential of
sustainable goods and services.
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1 c. Sample specif ication:
We covered a total of 83 respondents from the categories mentioned below:
RESPONDENTS SAMPLE SIZE CITY
INDUSTR
YSECTORS
IT 30Chennai, Bangalore &
Hyderabad
Auto Components 20 Gurgaon, Pune
Steel 5Jamshedpur, Delhi,
Mumbai,
Finance 5 Mumbai & Delhi
Construction (Consultancy) 5 Mumbai & Delhi
Energy EquipmentManufacturers
5 Mumbai & Delhi
ASS
OCIATIONS
/
COUNCILS
EPCs & I ndustryAssociations
10 Delhi
Planning Commission 1 Delhi
Ministry of Environment 1 Delhi
CPCB 1 Delhi
Total respondents 83
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EXPORT POTENTIAL OF SUSTAINABLE
GOODS & SERVICES CONSIDERING
ENVIRONMENTAL ISSUES: PART II
04 PRIM ARY FINDINGS
01 Export P romotion Council &
Industry Associations1.1 Ranking of states
1.2 Case Studies o f EPCs &
Association
02 Indian Companies & Sustainability
Process
2.1 Industrys outlook towards
sustainability: Sector-w ise
2.2 Case Studies of Model Com anies
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Abbreviations
Councils and Industry Associations
1. BAI : BUILDERS ASSOCIATION OF INDIA2. EEPC: ENGINEERING EXPORTS PROMOTION COUNCIL3. ESC: ELECTRONICS AND COMPUTER SOFTWARE EXPORT
PROMOTION COUNCIL
4. IWEA: INDIAN WIND ENERGY ASSOCIATION5. MAIT: MANUFACTURERS ASSOCIATION FOR INFORMATION
TECHNOLOGY
6. PEPCI: PROJECT EXPORTS PROMOTION COUNCIL OF INDIA7. IMTMA: INDIAN MACHINE TOOL MANUFACTURERS8. NAREDCO: NATIONAL REAL ESTATE DEVELOPMENT COUNCIL9. SIAM: SOCIETY OF INDIAN AUTOMOBILE MANUFACTURERS10.ISSDA: INDIAN STAINLESS STEEL DEVELOPMENT ASSOCIATION11.CER: COMMI SSION FOR ENERGY REDUCTION12.CDMs: CLEAN DEVELOPMENT MECHANISM
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P R I M A R Y F I N D I N GS 0 4
EXPORT POTENTIALITY OF SUSTAINABLE GOODS & SERVICES
TAKING ENVIRONMENTAL ISSUES INTO CONSIDERATION
01.EP Cs & I NDUSTR Y ASSOCI ATI ONS
1.1 RANKING OF STATES
We conducted in-depth interviews with 10 councils and industry associations.
However, when the representative of these bodies was asked to rank states
as per their pro-activeness in promoting sustainable development and
consideration of environmental issues. The response rate for this was only
60%, since some of them refused to disclose these details.
[Working Note: The average of ranks have been taken out in order to
conclude the lowest average to score to be the highest rank gained (i.e.
Karnataka scored 1.8 as an average rank from 6 councils and this being the
lowest would be ranked 1). Further there were situations where fellow men
of councils only gave ranks to 4 states out of 8 states mentioned. In case of
no response the region was ranked 9.
EPCs & INDUSTRY ASSOCIATIONS
- Ranking of states- Case Studies
INDUSTRYS OUTLOOK TOWARDS SUSTAINABILITY- Analysis of findings
- Case Studies of model companies
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The rankings given by the councils for some regions of India are shown in the
following table:
RANK STATESEPC's & INDUSTRY ASSOCIATIONS
BAI ESC IMTMA INWEA MAIT NAREDCO
1 KARNATAKA 3 1 2 3 1 1
2 MAHARASHTRA 10 5 3 2 2 3
3 DELHI / NCR 1 2 10 10 3 2
4 GUJARAT 10 10 1 4 10 10
5 TAMIL NADU 10 10 5 1 10 10
6ANDHRAPRADESH
10 3 4 10 10 10
7UTTARPRADESH
5 4 10 10 10 10
8 HARYANA 2 10 10 10 10 10
9 WEST BENGAL 4 10 10 10 10 10
Overall, Karnataka tops the chart and is most progressive region in India as
per the councils with respect to sustainable development. This is followed by
Maharashtra and Delhi NCR on 2nd and 3rd position. Some of the councils
also ranked regions like Maharashtra, Gujarat and West Bengal which were
not included in the questionnaire. Though West Bengal and Haryana have
got low ranks overall, they were ranked 4 and 2 by BAI (Builders Association
of India) alone.
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1.2 CASE STUDIES: EPCs & I NDUSTRY ASSOCIATI ONS
Established in year 1941 in Pune, Builders Association of India (BAI) has
come a long way in bringing transparency, and accountability among the
contractors in the construction industry. This institution provides a very
important insight about the ground level situation in the construction
industry.
SOURCE
BAI website
BUILDERS ASSOCIATION OF I NDIA
SECTOR-WISE ANALYSIS
BUILDERS ASSOCIATION OF INDIA
ENGINEERING EXPORTS PROMOTION COUNCIL
ELECTRONICS AND COMPUTER SOFTWAREEXPORT PROMOTION
COUNCIL
INDIAN WIND ENERGY ASSOCIATION
MANUFACTURERS ASSOCIATION FOR INFORMATION
TECHNOLOGY
PROJECT EXPORTS PROMOTION COUNCIL
SOCIETY OF INDIAN MANUFACTURERS (SIAM)
NATIONAL REAL ESTATE DEVELOPMENT COUNCIL (NARDECO)
INDIAN MACHINE TOOL MANUFACTURERS ASSOCIATIONS
INDIAN STAINLESS STEEL DEVELOPMENT ASSOCIATION
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The growth trend of sustainable goods and services is on the positive side
but the growth rate is slow. The main reason for this has been the
commercial consideration of the projects. The cost of the projects becomes
very high if environmental considerations are taken properly. However
according to Mr. S.S. Arora (Executive Officer-BAI) , now the members
are taking environmental issues seriously as these regulations are becoming
mandatory.
Also Government of India is promoting the companies which are showing
advances on the environmental front through rewards and recognition. BAI,
the associations of authorized builders in India, support their members
activities by providing them with information about various sustainable
opportunities in Indian markets. However no such information about other
markets is at hand with BAI . Also the association is actively involved in
spreading the issues of Global Warming, development of technologies
regarding efficient use of renewable sources of energy etc within its
members. In sync with that the association also encourages membercompanies to work in clusters to find energy efficient solutions. The
association is also in touch with similar foreign associations to share
knowledge about sustainable goods and services.
Mr. Arora ranked the below mentioned five states as the states which are
aggressively promoting the growth of sustainable goods and services:
RANKS STATES
1 DELHI
2 HARYANA
3 KARNATAKA
4 WEST BENGAL
5 UTTAR PRADESH
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Commentingon the achievements and scope of improvement Mr. Arora said
The Delhi Government is spreading the awareness among the
common public and corporate alike about the environmental
protection and use of renewable resources and is concerned about
the environment more than other states. Moreover Commonwealth
Games is coming up so Delhi govt. is trying to make Delhi a GREEN
CITY. All other governments should follow the footsteps of Delhi
Government. This will lead to the development of this concept all
over the country.
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Engineering Exports Promotion Council was set up in the year 1955 under the
sponsorship of Ministry of Commerce to promote exports of engineering
goods from India. It has come a long way to become the largest Export
Promotion Council with about 12000 members from amongst large corporate
houses, trading houses, medium scale Units etc. The council actively pursues
various activities with a focus on two objectives of facilitating exports of
engineering goods & services and to provide overseas buyers the true valueof the products.
The growth of engineering goods export is shown in the figure below:
(Source: www.eepc.org)
Commenting on the growth trend of sustainable goods and services in
engineering sector Mr. R. Maitra (Executive Director, EEPC) saidExport
houses have shown inclination to follow the environmental norms.
Engineering Exports has been grow ing at the rate of 25% during the
period 2002-03 to 2006-07. However, the rate of growth in
SOURCE
EEPC website. : www.eepcindia.org
10.84 61.76 488.2 833.88
3761
11553
15926
20300
1956-57 1965-66 1975-76 1985-86 1995-96 2002-03 2003-04 2005-06
Growth of Ind ian Engineering Export from 1956-57 to 2005-06(Value in US$ Million)
ENGINEERING EXPORTS PROMOTION COUNCIL
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engineering exports is expected to decline this year on account of
Rupee apprec iation against the US dollar.
Government of India presently is not providing with any incentives to the
companies as such. Engineering Export Promotion Council (EEPC) is mainly
there to help in the export of engineering goods and services. It acts like a
facilitator to the whole process and is not involved in rewarding the
companies in any ways. However EEPC support companies by providing them
with information about various sustainable opportunities in Indian as well as
foreign markets in case the companies ask for the same. Also the council is
actively involved in promoting the information about the benefits of Carbon
Trading for SME sector and how it is a good business proposition while
helping save the environmental balance within the members. The council is
also looking for the possibilities for developing Engineering clusters all over
India to work collectively towards finding energy efficient solutions. The
council is also in touch with similar foreign councils to share knowledge about
sustainable goods and services.
According to Mr. Maitra ranking the states is not within the purview ofEEPC
and so they do not evaluate different states with any ranking system.
According to him all the states are governed by the regulations of
Government of India and their respective state governments and follow a
definite policy conducive to that states capabilities.
Commenting on the achievements and scope of improvement Mr. Maitra
said There is ample scope of developing sustainable exports in India.
Special export zones are coming up in the country and w ith the SEZ
model being encouraged, India is on its way to become an export
hub of Engineering goods and services.
ELECTRONICS AND COMPUTER SOFTWARE EXPORT
PROMOTION COUNCIL
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Electronics and Computer Software Export Promotion Council was
incorporated in the year 1989 and is Indias largest electronics and IT trade
facilitation organization and is sponsored by Government of India. The
council has more than 2300 member companies all through India. The
organization has steered the industry to show a CAGR of around 33.5%
from the year 1989 to the year ending at 2006-07.*****
Fig.1 shows thecomparison of growth rate of electronic industry and the GDP growth rate of
the country.
According to Mr. S.C. Ray (Advisor-ESC) The meaning of sustainable
goods and services is not known to a large mass. So even if they are
into the production and export of these goods and services they do
not have an idea themselves. But now to survive international
competition the exporters have to follow the required environmental
SOURCE***** ESC website.
16.421.1 18.2
28.824.9
29.14.5
4.7 8.5
7.58.4
9.2
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
%G
rowth
Electronic & Software CAGR vs GDP Grow th Rate
Software Industry Grow th(% ) GDP rate
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regulations and take required certifications. So now the trend is a
grow ing one but in most cases the reason is compulsion and not self
consciousness of the exporters.
According to him Government of India do promote the companies which are
showing advances on the environmental front through rewards and
recognition but the ground situation is not as rosy as it is perceived to be.
The companies have to take ISO and CE certifications to export to the
European markets but the problem at present is that the companies have
started producing two different qualities of the same component; one for
exports to the developed economies and another for domestic market and
other developing economies.
ESC provides information to companies for export opportunities and
requirements of all electronic equipments and exchanges the concerns of
exporters with the concerned authorities of other countries. However the
council does not provide any incentives to the companies as such or promote
any collective research to develop resource efficient solutions. According toMr. Ray, the council does remain in touch with similar foreign councils to
share knowledge about sustainable goods and services. He commented that,
according to WTO rules every country when issues a directive regarding
exports or imports, it has to consult with export councils of various other
countries with which they have direct or indirect ties and their decision may
effect the trade of the those countries.
Mr. Ray informed that the council ranks the cities as electronics and
software hubs instead of ranking the states. The table below shows the
states (along with cities) which are aggressively promoting the growth of
sustainable goods and services:
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RANKS STATES
1 KARNATAKA (Bangalore)
2 DELHI/NCR (Delhi, Gurgaon & Noida)
3 ANDHRA PRADESH (Hyderabad)
4 UTTAR PRADESH (Lucknow and adjacent region)
5 MAHARASTRA (Mumbai)
Commentingon the achievements and scope of improvement Mr. Rai said
There is lot that remains to be done. The companies should go for
new technologies and R&D. The main problem is of funds that are
required to be invested. In this regard the council is encouraging
contract manufacturing. There are signs of improvement as the
number of exporters taking environment related certifications is
increasing.
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Wind energy is one of the forms of renewable energy and is currently the
fastest growing renewable power source. There has been a twelve-fold
increase in the use of wind as a source of energy over the last ten years.
Indian Wind Energy Association was set up as a non-profit making
organization in the year 2002 with a mission to promote and spread
awareness about the benefits of wind energy and the crucial role it can play
in ensuring a sustainable path for the countrys economic and socialdevelopment. The association has more than 250 members and the
association is also a member of various national and international
associations like World Wind Energy Association, FICCI, and CII etc.
Commenting on the growth trend of wind energy sector Mr. Rakesh Kakkar
(Executive Director, INWEA) said This sector has the potential of
generating electricity to the limit of 65000 MW with the support of
technology available at present. The installed capacity of wind
energy has grown rapidly in the last three years and stood at 7660
MW as on 30th September 2007 .
Mr. Kakkar said that government extends various benefits to companies
which harness renewable sources of energy. Under section 80-IA of
income tax act these companies are exempted from tax for 10 years.
Apart from this wind energy plants also get 80% accelerated
depreciation in the first year. However the association does not provide
any incentives or rewards as such to the company. The country is still not in
a position to export wind energy to other countries but the association does
take up the issue of expanding wind energy capacity of the country with the
government. INWEA conduct its own research for development of wind sector
SOURCE INWEA website. : www.inwea.org
INDIAN WI ND ENERGY ASSOCIATION
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in India. The company tries to create awareness about the potential of wind
energy in India through their magazines, websites and conferences. The
association also targets large organizations like Railways to use wind energy
for their captive use.
According to Mr. Kakkar wind energy is still not exported to other countries
but he did ranked states based on their installed capacity as:
RANKS STATES
1 TAMIL NADU
2 MAHARASHTRA
3 KARNATAKA
4 GUJRAT
5 RAJASTHAN
On the scope of improvement Mr. Kakkar said There is ample scope for
India to become a major player in this sector in future. Still only
about 12% of the total potential is being used in the country.
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Manufacturers Association for Information Technology is the
association of IT players of the country and represents 92% of the Hardware
Sector (by turnover). It was set up in the year 1982 with few objectives in
mind. They were:
Develop a globally competitive Indian IT Industry.
Promote usage of IT in India.
Strengthen the role of IT in National Economic Development.
Promote business through International alliances.
Promote quality consciousness in the IT industry.
Transform the Indian IT industry into World Scale Industry leading to a
World Class Usage and thus a World Size Market.
Commenting on the growth trend of sustainable goods and services in
engineering sector Mr. Vinnie Mehta (Executive Director, MAIT) said
The concept of sustainable goods & services in I T hardware industry
is very new. There is not much focus on exports. This can be seen
from the fact that a $7 billion market has only 15% of the turnover
as exports. Also in IT industry 10% of the companies hold 60% of
the market share. In India presently the problem is mainly of end if
the life cycle e-waste management. India is doing its bit for efficient
e-waste management but the problem is that the majority of this
sector is unorgan ized.
Government of India presently is not providing with any incentives to the
companies as such. Mr. Mehta commented that Manufacturers Association
for Information Technology (MAIT) presently does not provide any incentives
to companies for e-waste management but it intends to provide recognition
to the companies which promote environment friendly practices in future.
SOURCE MAIT website. : www.mait.com
MANUFACTURERS ASSOCIATION FOR I NFORMATI ON TECHNOLOGY
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so that company can know the minimum which is expected from
them.
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Project Exports is a reflection of the technological capabilities of a country. It
can be divided into four broad categories as:
Civil Construction.
Turnkey Modules.
Consultancy Services.
Supplies, primarily of capital goods and industrial manufactures.
Project Exports Promotion Council was formed in the year 1984 with a vision
to promote project exports in engineering construction projects, turnkey
engineering projects and consultancy & other engineering services from
India. The council provides necessary technical information, guidance and
support to Indian construction and process engineering contractors and
consultants in public or private sector to set up overseas projects.
The target market of India revolves mainly around Asia-Pacific Region and
South East Asia.
The sectoral composition of the project exports is shown in figureas follows:
(Source: Presentation on
EXIM Bank, FICCI Banking
Conclave, Kolkata,
21/07/2006)
Commenting on the growth
trend of sustainable goods and
services in engineering sector
SOURCE PEPC website. : www.projectexports.com
PROJECT EXPORTS PROMOTION COUNCIL
22%
32%16%
4%
26%
% Composition of Project Exports
Civil Construction
Pow er Generation
Power Transmission
Consultancy Services
Others
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Mr. K. Bhushan said Indian companies have shown capabilities to
secure contracts in India at international conditions but they have
not been able to replicate this show in the international market. The
growth trend is positive in the domestic market but same cannot be
commented for overseas market.
Project Exports Promotion Council (PEPC) mainly acts as an overseas
construction council of India to help establish projects outside. It is not
involved in rewarding the companies in any ways. Moreover environmental
norms are mandatory while taking projects in foreign land. The respondent
was also unable to comment on the benefits provided by the Government to
the companies which adhere to environmental norms. PEPC do provide
information about various sustainable opportunities in foreign markets to the
companies. The council does not fund any researches by the company to find
energy efficient solutions but do encourage companies to work collectively
towards finding energy efficient solutions. The council is also in touch with
similar foreign councils to share knowledge about sustainable goods and
services.
According to Mr. Bhushan ranking the states is not within the purview of
PEPC and so they do not evaluate different states with any ranking system.
Commentingon the achievements and scope of improvement Mr. Bhushan
said There is ample scope for India to become a leader in project
management across the nations. There is no dearth of brain in India.
Only a systematic approach w ith long term goals is what is needed.
Few steps were recommended by him. He commented that SAARC
countries need to be targeted. Small companies should be Joint
Venturing with the big giants to be able to participate in the Mega
projects. Also scope of improvement is there in BOT mechanism
(Build Operate and Transfer).
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SOCIETY OF INDIAN MANUFACTURERS (SIAM)
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Society of Indian Automobile Manufacturers (SIAM) is the apex Industry body
representing 38 leading vehicle and vehicular engine manufacturers in India.
SIAM is an important channel of communication for the Automobile Industry
with the Government, National and International organizations. The Society
works closely withy all the concerned stake holders and actively participates
in formulation of rules, regulations and policies related to the Automobile
Industry.
In the words of the respondent, K.K.Gandhi, The growth trend of sustainable
goods & services in automobile manufacturing industry is very encouraging.
The figure below substantiates the statement given by Mr. Gandhi. According
to the figure, over the years exports percentage out of the total production
of automobile vehicles is increasing. The trend line in the diagram explains
the future situation and the R2 value proves its authenticity with 97%
confidence.
y = 1.122x - 2241.R = 0 .974
0
1
2
34
5
6
7
8
9
10
2000 2001 2002 2003 2004 2005 2006 2007ExportasapercentageofTotal
Produ
ction
Time Scale
Export (no. of vehicles) as a percentage of Total P roduction (no. of
vehicles) in the Automobile Sector in India
Export as a percentage of vehicle
Linear (Export as a percentage of vehicle)
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The automobile companies do not receive any monitory assistance from the
Govt. on the environment frontier. They just follow the environment norms
as mandatory and to some extent as market driven incentives. Moreover
there are no special incentives for the companies having ISO 14001.
Central Motor Vehicles rules 1989- Technical Standing Committee (CMVR-
TSC) have its representatives from SIAM. The committee advises The
Ministry of Shipping, Road Transport & Highways (MoSRT&H) on various
technical aspects related to CMVR. SIAM in turn delivers the required
information to its member companies. Along with that they also update the
industry players about foreign rules like various agreements issued by United
Nations Economic Commission for Europe (UNECE) regulations.
The companies put serious effort to make their products at par with the
world standard. Hence they have to make significant investment in the
research and development. It is worth mentioning in this regard that the
companies who invest sincerely in the R & D get monitory benefits from the
Govt. and SIAM being a part of CMVR-TSC also put their voice in this issue.
The association makes various moves to prove themselves as a pro-active
organization in organizing and attending environment related seminars and
programme. Hence they can make the companies aware about environment
related information. The various programmes can be summarized as follows:
SIAM Annual Convention 2007: Implementing Automotive Mission Plan
2006-16 - Ensuring Sustainable Growth is this years them for the annual
convention of the Society of Indian Automobile Manufacturers
SAFE Annual Convention 2007: It is an initiative from the central and
the state governments. Private sector and non-government organization
to translate into reality the theme for the convention Riding the Roads:
To a Safer and Greener Tomorrow. The objective of the seminar is to
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bring the experts, policy maker and all the stakeholders to exchange best
practices.
NATI ONAL REAL ESTATE DEVELOPMENT COUNCIL (NAREDCO)
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National Real Estate Development Council (NAREDCO) is an apex self
regulatory body of real estate and allied sectors. It was established in the
year 1998 under the tutelage of Union Ministry of Housing & Urban Poverty
Alleviation.
Brigadier Singh (Senior Executive-Environment) from NAREDCO representing
their industry stated that the real estate sector has recorded a sustained
growth in the last few years owing to a surging economy and heavy inflows
of FDI into Indian Real Estate market. The major players in this sector have
to follow certain environment specific norms for getting investments for their
projects. According to him since the industry has shown incredible growth in
the last couple of years and is now in public focus so the companies are
taking extra care in following all the norms.
According to the respondent the Govt. of India do provide tax subsidy to
companies under Section 80-IA. The council does not provide incentives to
the companies but do take on issues concerning the sector with the relevant
ministry. Moreover the required environmental standards need to be followed
by the companies to operate in the market.
The council is very pro-active in developing the sector into a contributing
sector towards the development of Indian economy. For this they organize
seminars, exhibitions, conventions and publish journals in this regard. They
also provide information about various opportunities to the member
companies. The council is also carrying out a project along with CRISIL to
rate real estate developers and projects. The association takes these types of
initiatives to make its member companies more informative about various
related issues. Also the council exchange information with similar councils
from Serbia, Dubai etc.
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It can be mentioned that NAREDCO is also associated with the project of
Green Building. The Green Building value chain is shown in the figure as:
(Source: www.greenbusinesscentre.com)
The performance of NAREDCO in making the members and other similar
organization is worth mentioning. NAREDCO collectively with BAI (Builders
Association of India) and ICCTAS (Indian Council of Ceramic Tiles & Sanitary
ware) conducted an exhibition on A good home idea.******
The state wise performance in the context of export of sustainable goods and
services can be ranked as follows:
SOURCE******
www.naredco.org
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STATE RANKING
Delhi 2
Uttar Pradesh -
Haryana -
Karnataka 1
Tamil Nadu -
Andhra Pradesh -
Gujarat -
Maharashtra 3
Commenting on the achievements and scope of improvement Brig. Singh
said Many developments have taken place in the recent years. Use of
various hazardous materials are now restricted. But a lot need to be done in
the future. Parameters need to be laid down and their implementation
process should be reviewed on a regular basis so that the measures are
successful.
INDIAN MACHINE TOOL MANUFACTURERS ASSOCIATION (IMTMA)
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IMTMA is an apex body of the machine tool industry. It was established halfthe century ago with the motive of promotional activity for the industry. At
present it represent over 300 companies from both, the public and private
sectors, manufacturing a wide range of metal-cutting and metal-forming
machines, cutting tools, accessories and other ancillary equipments.
Mr. Pundle from IMTMA represents their industry as the producer of
sustainable goods. It creates least amount of hazardous waste and almost
every product of this industry are m
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