During last six months, raw material cost for Kraft paper increased 25 percent. Labour costs and price of Kraft paper too increased by an average 20 percent. The Indian Corrugated Case Manufacturers Association (ICCMA) has asked government to reduce customs duty on imported kraft paper from its present rate of 10 percent. The 10 percent customs duty makes it very difficult to import kraft paper.

Currently imports are negligible as the present average price of kraft paper is Rs 26,000 per ton. The Hyderabad based manufacturers too source inputs from Maharashtra and Gujarat. The price of kraft paper increased by 25 per-cents. Cost of all other inputs like adhesives, wire, labour and power too increased. Production cost went up by 30 percent. The international market trends determine prices.

Minimum standards of protection for IPRs have been made mandatory based on WTO Agreement. The WTO agreement is based on trade-related aspects of IPRs (TRIPS). Since the year 1995 several IP laws have been enacted such as Protection of Plant Varieties and Farmer’s Rights Act, 2001, Geographical Indications (Registration and Protection) Act, 1999, Designs Act, 2000 and the Semiconductors Integrated Circuit Layout Designs Act, 2001.

In 1998, India also became a part of the Patent Cooperation Treaty and recently also have joined in the Madrid Protocol related to trademarks. Krishna Sharma, managing director of Corporate Law Group stresses on the benefits derived by SMEs from IPRs use. This is valid for innovative products, creative designs and brands and is meant to enhance the value chain.

Sharma says, “SMEs are already a force to reckon with in the economic ecosystem, all with the impressive growth in the last few years, especially in the fields of light engineering, textiles, biotech and IT.” There are more than 13 million SME units employing over 42 million people. This amounts to 45 percent in manufacturing share and 40 percent in exports.

A mechanism to enforce IPRs needs to be set up according to Sharma. It means effectively implementing court orders to fight back TM infringement action, opposing the menace of flagrant counterfeit, ending piracy and border measures against grey goods.

Eleven of 17 industry groups showed a positive growth in April, compared to the same time last year.

The furniture and fixtures sector showed the highest growth at 31.4 percent, followed by wool, silk and man-made fiber textiles, with a 12.6 percent growth rate, said the International Business Times.

On the other hand, food product production showed a negative growth of 34.4 percent, followed by a 12.4 percent decline in leather and fur products.

The ambassador also mentioned trade possibilities in other sectors such as pharmaceuticals and agriculture items including rice, coffee and meat. Considerable trading is already happening between the two countries, with export-import activity generating more than $60 million. Ninety percent of Tajikistan’s imports come from India.

Companies like MMTC and the State Trading Corporation of India are exploring more joint ventures and trading possibilities.

The government is considering a package to support small business owners, specifically the export industry, which has posted negative growth for three straight months.

“The proposed stimulus packages will focus on export-oriented sectors as well as industries that employ a large number of people, like automobile, textiles, leather and construction,” said Kumar after inaugurating the 24th India International Leather Fair.

According to him, the government’s focus is to protect and minimize job losses rather than offer subsidies to the industries.