Role of Indian Chambers of Commerce and Industry in Promotion of Internal Trade

The Chambers of Commerce and Industry was formed as an association of business and industrial houses to promote and protect their common interest and goals. Many such chambers where formed and are present in the country. For example, ASSOCHAM, Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI). These associations or chambers regard themselves as the national guardians of trade, commerce and industry. The Indian Chambers of Commerce and Industry has been playing a catalytic role in strengthening internal trade to make it an important part of overall economic activity. Besides, the chamber also aims at erecting sound infrastructure and simplifying and harmonizing the tax structures. The interventions are mainly in the following areas:
Transportation or inter state movement of goods: The Chambers of Commerce and Industry help in many activities concerning Inter- state movement of goods which includes registration of vehicles, surface transport policies, construction of highways and roads.

Octroi and other local levies: Octroi and local taxes are the important sources of revenue of the local government. These are collected on the goods and from people entering the state or the municipal limits. The government and Chambers of Commerce should ensure that their imposition is not at the cost of smooth transportation and local trade. Marketing of agro products and related issues: Streamlining of local subsidies and marketing policies of organizations selling agro products are some of the areas where the Chambers of Commerce and Industry can really intervene and interact with concerned agencies like farming cooperatives.

Excise duty: The excise policy plays an important role in pricing mechanism and hence the associations need to interact with the government to ensure streamlining of excise duties.

Promoting sound infrastructure: A sound infrastructure like road, port, electricity, railways etc., plays a catalytic role in promoting trade. The Chambers of Commerce and Industry in collaboration with the government needs to take up heavy investment projects.

Harmonization of sales tax structure and Value Added Tax: The Chambers of Commerce and Industry play an important role in interacting with the government to harmonize the sales tax structure in different states. The sales tax is an important part of the state revenue. A rational structure of the sales tax and its uniform rates across states, are important for promoting a balance in trade. Labour legislation: Simple and flexible labor legislation is helpful in running industries, maximizing production and generating employment. The Chambers of Commerce and Industry the government are constantly interacting on issues like labor laws, retrenchment etc.

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