WTO & IRE ASSIGNMENT

SUBMITTED TO; Mr. DEBASHISH CHOUDHARY

SUBMITTED BY; SUSHANT MEHTA YASHASVI VERMA MOHD. AAMIR KHAN ASHOK LAHOTY VINEET KAUSHIK VARUN KHANNA NITIN SHARMA

PRE 1991 SCENARIO OF FOREIGN TRADE

Exim is the principal financial institution in the country for co-coordinating working of institutions engaged in financing exports and imports. The import policy in the post independence period was guided by consideration of a growth oriented policy which should ultimately lead us to the objective of self reliance. The government appointed the Import and Export Policy Committee headed by Mr. Mudaliar in 1962 to review Governments trade policy. The recommendations of the committee were accepted by the government. Mr.V.P.Singh, the then Commerce Minister, announced the Export Import policy on the 12 th of April, 1985.It was here that for the first time the Government announced the policy on a three year basis. The basic aim of the policy was to facilitate production through easier and quicker access to imported inputs, impart continuity and stability of Exim Policy, strengthen the export production base, facilitate technological up gradation and affect all possible savings in imports.

BRIEF REVIEW OF INDIAS TRADE POLICIES Indias foreign trade policy during the last five decades may be broadly split into import substitution policy, export drive policy and export acceleration policy. The import substitution was followed in the first two decades. With fears of external dominance, the Indian planners adopted a somewhat introvert external trade strategy which relied on encouraging domestic production for the domestic market with the help of high tariffs and high degree of protection. Far from viewing foreign trade as an engine of growth, Indian planners sought to minimise import demand by adopting an import substitution policy and gave secondary place to exports primarily as a source to generate the foreign exchange earnings to meet that part of the import bill not covered by external assistance. There were controls over both imports and exports. However, this policy of import substituting industrialisation and system of controls failed to produce rapid growth and self-reliance. With the realisation of the drawbacks of the excessively inward-looking strategy on one hand and the need for modernisation and technology upgradation on the other, certain policy measures were initiated in the late seventies. Export incentives in the form of cash compensatory support (CCS), import replenishment (REP), duty drawback (DDS), market development assistance (MDA) etc and export services in the form of export promotion councils, commodity boards and specialised services institution were introduced. The strategy towards a greater integration of the Indian economy with the rest of the world has been pursued since then. In 1975-76 import policy was liberalised to make available imported

inputs for registered exporters. In mid-1980s the government adopted a three-year import-export policy (1985-88) with the aim to provide easy access to imports, essential for maximizing production and exports. The main policy changes were abolition of automatic licensing, inclusion of 201 items of industrial machinery under capital goods import under OGL, decentralisation of 53 import items and granting facility for import of capital goods against REP license from Rs 1 lakhs to Rs 2 lakhs. The second three-year policy (1988-91) carried forward the process of trade liberalisation to make exports more competitive. The policy was designed to stimulate industrial growth by providing easy access to essential imported capital goods, raw materials and components to industry so as to sustain movements towards modernization, technological upgradation and making Indian industry competitive

internationally. The liberal imports of capital goods and technology were viewed as a means to enable exporters to undertake technological upgradation in order to compete more effectively in the international market. In the 1990s many short run adjustments were made in the trade policy in order to overcome the external sector crisis, which hit the country in 1991. Two major measures taken in trade policies were (a) liberalisation of imports entailing successive expansion in the OGL list and (b) linking expansion in exports to import liberalisation. CCS scheme was suspended; REP license was substituted by EXIM scrips. The rupee was devalued in July 1991 and the country saw transition towards the market-based exchange rate regime. From Independence in 1947 till mid 1990s, India with some exceptions, always faced deficit in its balance of payments i.e. imports always exceeded exports. This was characteristic of a developing country struggling for reconstruction and modernization of its economy. Imports galloped because of increasing requirements of capital goods, defence equipments, petroleum products, and raw materials. Exports remained relatively sluggish owing to lack of exportable surplus, competition in the international market, inflation at home, and increasing protectionist policies, of the developed countries. IMPORT SUBSTITUTION: CORNERSTONE OF TRADE POLICY India adopted an inward looking development strategy after independence wherein import substitution constituted a major element of both trade and industrial policies. The focus in the initial stages of planned development was on stimulating home grown industrialization, essentially based on the infant industry argument ,wherein production for domestic market was shielded behind high tariff walls and high effective protection .this policy not only underestimated the export possibilities but also the import

intensity of the import substitution process itself. Import substitution was the prime objective of Indias trade policy till the mid 1970s. This policy was largely based on the imports and exports act of 1947. Liberal incentives were granted to firms if they were undertaking production of an imported item that was not domestically produced. Protective quotas however remained more or less intact and domestic industry continued to be shielded from import competition. Production for exports cannot be isolated from production for the home market and trade policy would have to be integrated with the policy for domestic industrialization. BALANCE OF PAYMENT (BOP) CRISIS, 1991 The balance of payment situation became very difficult in 1991-1992 despite of softening of oil price in the world market. Even with a substantial import compression, the pressure on the balance of payments persisted throughout the current financial year. The government attempted to mobilize support for balance of payments for multilateral financial institutions the international monetary fund, the World Bank and the Asian development bank. Another important initiative taken by the government to meet the urgent need for the balance of payments financing was the announcement of two schemes designed to encourage the inflow of capital funds from abroad .The India development bond scheme and

the immunity scheme for repatriation of funds held abroad were introduced in October1991.

EXIM POLICY
Indian EXIM Policy contained various policy related decisions taken by the government in the sphere of Foreign Trade, i.e., with respect to imports and exports from the country and more especially export promotion measures, policies and procedures related thereto. Trade Policy is prepared and announced by the Central Government (Ministry of Commerce). India's Export Import Policy also know as Foreign Trade Policy, in general, aims at developing export potential, improving export performance, encouraging foreign trade and creating favorable balance of payments position. HISTORY OF EXIM POLICY OF INDIA In the year 1962, the Government of India appointed a special Exim Policy Committee to review the government previous export import policies. The committee was later on approved by the Government of India. Mr. V. P. Singh, the then Commerce Minister and announced the Exim Policy on the 12th of April,

1985. Initially the EXIM Policy was introduced for the period of three years with main objective to boost the export business in India. DOCUMENTS IN EXIM POLICY The description of exim policy of India is given in following documents: Interim New Exim Policy 2009 - 2010 Exim Policy: 2004- 2009 Handbook of Procedures Volume I Handbook of Procedures Volume II ITC(HS) Classification of Export- Import Items

OBJECTIVES OF EXIM POLICY At the same time, all-out efforts are made to promote exports. Thus, there are two aspects of Exim Policy; the import policy which is concerned with regulation and management of imports and the export policy which is concerned with exports not only promotion but also regulation. The main objective of the Government's EXIM Policy is to promote exports to the maximum extent. Exports should be promoted in such a manner that the economy of the country is not affected by unregulated exportable items specially needed within the country. Export control is, therefore, exercised in respect of a limited number of items whose supply position demands that their exports should be regulated in the larger interests of the country. In other words, the main objective of the Exim Policy is:

To accelerate the economy from low level of economic activities to high level of economic activities by making it a globally oriented vibrant economy and to derive maximum benefits from expanding global market opportunities.

To stimulate sustained economic growth by providing access to essential raw materials, intermediates, components,' consumables and capital goods required for augmenting production.

To enhance the techno local strength and efficiency of Indian agriculture, industry and services, thereby, improving their competitiveness.

To generate new employment. Opportunities and encourage the attainment of internationally accepted standards of quality. To provide quality consumer products at reasonable prices.

EXIM POLICY GOVERNING BODY The Government of India advises the Exim Policy of India for a phase of five years under Section 5 of the Foreign Trade (Development and Regulation Act), 1992. The current Export- Import Policy of India covers the period 2009-20014. The Exim Policy is renewed every year on the 31st of March and the revisions, improvements and new proposals and designs become effective from 1st April of every year. All forms of updating or modifications associated to the Indian Exim Policy is normally proclaimed by the Union Minister of Commerce and Industry who synchronizes with the Ministry of Finance, the Directorate General of Foreign Trade and network of DGFT Regional Offices. However, the central government reserves the right to alter any of the sections of this new export-import policy of India in public interest. Some of the focus proposals of the policy are: To have a larger share in the global trade and produce more employment prospects, a number of focus initiatives that have been identified for diverse sectors are: agriculture, handloom, handicraft, gems and jewellery etc.

EXIM POLICY (1992 -1997) In order to liberalize imports and boost exports, the Government of India for the first time introduced the Indian Exim Policy on April I, 1992. In order to bring stability and continuity, the Export Import Policy was made for the duration of 5 years. However, the Central Government reserves the right in public interest to make any amendments to the trade Policy in exercise of the powers conferred by Section-5 of the Act. Such amendment shall be made by means of a Notification published in the Gazette of India. Export Import Policy is believed to be an important step towards the economic reforms of India. EXIM POLICY (1997 -2002) With time the Exim Policy 1992-1997 became old, and aNew Export Import Policy was need for the smooth functioning of the Indian export import trade. Hence, the Government of India introduced a new Exim Policy for the year 1997-2002. This policy has further simplified the procedures and educed the interface between exporters and the Director General of Foreign Trade (DGFT) by reducing the number of documents required for export by half. Import has been further liberalized and better efforts have been made to promote Indian exports in international trade.

EXIM POLICY (2002-2007) The Exim Policy 2002 - 2007 deals with both the export and import of merchandise and services. It is worth mentioning here that the Exim Policy: 1997 - 2002 had accorded a status of exporter to the business firm exporting services with effect from1.4.1999. Such business firms are known as Service Providers.

FOREIGN TRADE POLICY

It is a set of guidelines and instructions established by the DGFT in matters related to the import and export of goods in India. The Foreign Trade Policy of India is guided by the Export Import in known as in short EXIM Policy of the Indian Government and

is regulated by the Foreign Trade Development and Regulation Act, 1992. DGFT (Directorate General of Foreign Trade) is the main governing body in matters related to Exim Policy. The main objective of the Foreign Trade (Development and Regulation) Act is to provide the

development and regulation of foreign trade by facilitating imports into, and augmenting exports from India. Foreign Trade Act has replaced the earlier law known as the imports and Exports (Control) Act 1947. FOREIGN TRADE POLICY OF INDIA While India has gradually opened up its economy, its tariffs continue to be high when compared with other countries, and its speculation norms are still restrictive. This leads some to see India as a rapid globalizer while others still see it as a highly protectionist economy. The main focus of this page is the foreign trade policy of India. Foreign trade concerning main legislation in India is the Foreign Trade (Development and Regulation) Act, 1992. The Act endow with the expansion and regulation of foreign trade by assisting imports into, and supplementing exports from, India and for matters associated therewith or incidental thereto. In modern years, the governments stand on trade and investment policy has demonstrated a marked shift from protecting producers to benefiting consumers. This was revealed in its foreign trade policy of India for 2004/09 according to which, "For India to become a major player in world trade we have also to make possible those imports which are required to stimulate our economy." Along with economic transformations, globalization of the Indian economy has been the leading factor in devising the trade

policies. The reform procedures pioneered in the subsequent policies have focused on liberalization, ingenuousness and lucidity. They have given export friendly surroundings by simplifying the procedures for trade facilitation. Substituting the nomenclature of EXIM Policy by Foreign Trade Policy (FTP) is another step in this course. It takes an incorporated view of the overall development of Indias foreign trade and provides a roadmap for the development of this sector. A dynamic export-led growth strategy of doubling Indias share in global commodities trade (in the next five years), with a spotlight on the sectors having prospects for export expansion and prospective for employment generation, constitute the main lath of the policy. All such events are expected to enhance India's international competitiveness and aid in auxiliary increasing the acceptability of Indian exports. The policy sets out the core intentions, identifies key strategies, spells out focus initiatives, delineates export incentives, and also addresses issues relating to institutional support including simplification of procedures relating to export activities. India is now belligerently pushing for a more liberal global trade regime, especially in services. It has implicit a leadership role among developing nations in global trade debates, and played a critical part in the Doha negotiations. With economic reforms, globalization of the Indian economy has been the guiding factor in formulating the Foreign trade policy of India. In accordance with the provisions of the Act, a "Directorate General of Foreign Trade (DGFT)" has been set up as an attached office of the Ministry of Commerce and Industry. It is leaded by the 'Director General of Foreign Trade' and is answerable for formulating and implementing the Indian Foreign Trade Policy with the main intent of promoting Indian exports. The DGFT also issues licences to exporters and supervises their consequent commitments through a network of 32 regional offices located at the following places:- Ahmedabad; Amritsar; Bangalore; Baroda (Vadodara); Bhopal; Kolkata; Chandigarh; Chennai; Coimbatore; Cuttack; Ernakulam; Guwahati; Hyderabad; Jaipur; Kanpur; Ludhiana; Madurai; Moradabad; Mumbai; New Delhi; Panaji; Panipat; Patna; Pondicherry; Pune; Rajkot; Shillong; Srinagar(Functioning at Jammu); Surat; Thiruvananthapuram; Varanasi; and Vishakhapatnam. The coming years are sure to witness a vigorous export-led growth strategy of doubling Indias share in global merchandise trade with a focus on the sectors having prospects for export expansion. The rising potential for employment generation will constitute the main backbone for the Indian foreign trade policy.

WHY EXIM TO FTP?

The context in which the new Foreign Trade Policy (FTP) has been presented seemed as important as the policy itself. It replaced the five-year Export Import Policy (2002-07), the most recent amendments to which were announced in January that year. At that time the NDA Government broke convention: exim policy statements have invariably been presented on the last day of the financial year. The justification was that the ensuing general election and the coming into force of the model code would cramp the substance and style of any major economic policy announcement. The new policy came at a time when India's foreign trade was growing robustly. The impressive growth of merchandise exports, by no less than 20.3 per cent in dollar terms last year, had continued. There had been a better than 25 per cent rise in imports too, which reflected a marked revival in industrial activity. Oil dominated the import bill that year, underlying the need for a further boost to exports. Finally, while fashioning a trade policy, issues connected with the World Trade Organisation (WTO) and the free trade agreements between India and other countries must be factored in. A framework agreement for the Doha round had been worked out in Geneva and Indian negotiators to face the challenge of devising modalities in a number of critical areas. The new policy had been presented a day before the Indo-Thailand Free Trade Area becomes operational. The FTP, according to the Government, was more than a change in nomenclature and had a much wider connotation than the exim policy it replaced. Promising an integrated approach to trade development, the FTP hoped to double the country's percentage share of global merchandise within the next five years and also generate substantial employment. For achieving these objectives, the Government will relied on some established strategies: loosen controls and created an atmosphere of trust; simplify procedures and reduced transaction costs; neutralise the incidence of levies and duties on inputs used in export products; facilitated technological and infrastructural upgradation in all sectors of the economy. The idea was also to revitalise the Board of Trade by redefining its role. While all this sounded fine, the real value of these measures was in their implementation. Agriculture and services got their due in the export promotion framework. The new initiatives announced for agriculture and the other thrust areas such as handicrafts, handlooms, gem and jewellery, and leather and footwear were commendable. Nearly all these sectors had proved their worth in export performance. But the promotional steps proposed were not exactly original; they involved a liberal import of capital goods and raw material to aid the export effort. The Duty Entitlement Passbook Scheme was persisted with until an alternative WTO compatible scheme was put in place.

The new Foreign Trade Policy did not suffered from a lack of vision. Further, it signaled continuity with exim policy. Perhaps the largely procedural agenda covered by the trade policies could never break completely with the past. However, a foreign trade policy could succeed only in conjunction with other economic policies working towards similar goals. For instance, infrastructure constraints, resulted in congestion at ports, had been major bottlenecks that other countries had succeeded in eliminating. Foreign trade benefited far more from relevant infrastructure development than from financial sops, as the experience of China over the past decade had demonstrated. Finally, with the WTO rules coming into play, fiscal concessions and other sops were no longer in the exclusive domain of national trade policies.

DIFFERENCE BETWEEN FTP & EXIM POLICY

The FTP and the Exim policy are basically two names for the same policy. Kamal Nath decided it would be more appropriate to call the policy the foreign trade policy. He argued that it was necessary for the policy to go beyond exports and imports and have an integrated approach to the developmental requirements of Indias foreign trade. The FTP, like the Exim policies of the previous regime, was for a five-year period. The commerce ministry will make annual revisions to the policy, as was done with the Exim policies of the previous years.

FOOD INDUSTRY OVERVIEW

India is the worlds second largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. The food processing industry is one of the largest industries in India-it is ranked fifth in terms of production, consumption, export and expected growth. The food industry is on a high as Indians continue to have a feast. Fuelled by what can be termed as a perfect ingredient for any industry -large disposable incomes - the food sector has been witnessing a marked change in consumption patterns, especially in terms of food. Food processing is a large sector that covers activities such as agriculture, horticulture, plantation, animal husbandry and fisheries. It also includes other industries that use agriculture inputs for manufacturing of edible products. The Ministry of Food Processing, Government of India indicates the following segments within the Food Processing industry: Dairy, fruits & vegetable processing Grain processing Meat & poultry processing Fisheries Consumer foods including packaged foods, beverages and packaged drinking water. Value addition of food products is expected to increase from the current 8 per cent to 35 per cent by the end of 2025. Fruit & vegetable processing, which is currently around 2 per cent of total production will increase to 25 per cent by 2025. The highest share of processed food is in the dairy sector, where 37 per cent of the total produce is processed, of this only 15 per cent is processed by the organized sector. The food processing industry in the country is on track to ensure profitability in the coming decades. The sector is expected to attract phenomenal investments of about Rs 1,400 billion in the next decade.

POLICIES AND REGULATIONS The Government has formulated and implemented several schemes to provide financial assistance for setting up and modernizing of food processing units, creation of infrastructure, support for research and development and human resource development in addition to other promotional measures to encourage the growth of the processed food sector.

 The Centre has permitted under the Income Tax Act a deduction of 100 per cent of profit for five years and 25 per cent of profit in the next five years in case of new agro processing industries set up to package and preserve fruits and vegetables. Excise Duty of 16 per cent on dairy machinery has been fully waived off and excise duty on meat, poultry and fish products has been reduced from 16 per cent to 8 percent. Most of the processed food items have been exempted from the purview of licensing under the Industries (Development and regulation) Act, 1951, except items reserved for alcoholic beverages. Food processing industries were included in the list of priority sector for bank lending in 1999. Automatic approval for foreign equity up to 100 per cent is available for most of the processed food items except alcohol, beer and those reserved for small-scale sector subject to certain condition The Union Commerce Ministry has approved a brand promotion campaign for value-added Made in India cashew being launched in the West Asian market by March end. The campaign, mooted by Cashew Export Promotion Council of India (CEPCI), involves a financial assistance of US$ 344,787 by the Ministry. Full repatriation of profits and capital has been allowed. Zero duty import of capital goods and raw material for 100 per cent export oriented units. Sales of up to 50 per cent in domestic tariff area for agro based, 100 per cent export oriented units is allowed. Government grants have been given for setting up common facilities in agro Food Park. Full duty exemption on all imports for units in export processing zones has been done. small-scale sector and

Food Safety and Standard Act, 2006 Till the year 2005, thirteen different laws were applicable on the food and food processing sector. Multiple laws/ regulations prescribe varied standards regarding food additives, contaminants, food colours, preservatives and labeling. In order to rationalize the multiplicity of food laws, a Group of Ministers (GoM) was set up to suggest legislative and other changes to formulate integrated food law, to be a single reference point in relation to regulation of food products. Based on the recommendations of the GoM the ministry of food processing enacted the Food Safety & Standard Act (FSSA), 2006. Salient features of the act:

 FSSA will be aided by several scientific panels and a central advisory committee to lay down standards for food safety. These standards will include specifications for pesticide residue, biological hazards and labels. The law will be enforced through State Commissioners of Food Safety and local level officials. Everyone in the food sector is required to get a licence or a registration which would be issued by local authorities. Every distributor is required to be able to identify any food article to its manufacturer, and every seller to its distributor. Anyone in the sector should be able to initiate recall procedures if he finds that the food sold had violated specified standards. FOREIGN DIRECT INVESTMENT ingredients, contaminants,

The government of India is planning to offer 100 per cent foreign direct investment and income tax benefits in the food processing sector. Foreign direct investment (FDI) in the country's food sector is poised to hit the US$ 3billion mark. In the last one year alone, FDI approvals in food processing have doubled. The cumulative FDI inflow in food processing reached US$ 2,804 million in March '06. In '0506, the sector received approvals worth US$ 41 million. This figure is almost double the US$ 22 million approved in 2004-05. Nearly 30 per cent of FDI in this sector comes from EU countries such as Netherlands, Germany, Italy and France. Eleventh Five Year Plan (2007-2012) Initiatives To cope up with the growth of 9% visualized during the 11th Five Year Plan milk production has to be enhanced, so that, per capita availability is doubled as milk contributes almost 60-65% of the total livestock product value To build participatory institutions of collective action for small-scale farmers that allow them vertically integrated with livestock processors and input suppliers. To create an environment in which farmers will increase investment in ways that will improve to get

productivity in the livestock sector To promote effective regulatory institutions to deal with the threat of environmental and health crisis stemming from livestock To increase per ha. fish production through private sector to bring it at par with national average To develop PAN culture for raising fish finger-lings

 Renovation of 1,642 seasonal ponds through NREG Programme to make available approx. ha. additional water area Development of fish seed production and infrastructure in vicinity of NVDA reservoirs Providing employment to fisherman communities by allotting water bodies on long lease culture To introduce biotechnology in fish seed and fish production Infrastructure Development in Food Processing Sector There is a lack of suitable infrastructure in the shape of cold chain, packaging centres, value added centre, modernized abattoirs etc. Improvement in general infrastructure is also an aid for energizing of for

6,000

fish

sector. Government attaches highest priority to development and expansion of physical infrastructure for facilitating prompt growth of industries. In order to address the problem of infrastructure in food processing sector, the Government has implemented the scheme for infrastructure development comprising the following components: Food Park Scheme Packaging Centres Integrated Cold Chain Facility Value Added Centre (VAC) Irradiation Facilities Modernized Abattoir

Sector-Specific Government Policies FRUITS & VEGETABLES Though no industrial license is required for setting up Fruits & Vegetable Processing industries, settingup 100 per cent Export Oriented Units require specific Govt. approvals. Many Fruits & Vegetables Processing industries are eligible for automatic approval of foreign technology agreement and up to 51 per cent foreign equity participation including tomatoes, mushrooms & other frozen vegetables, fruit, nuts, fruit-peel, fruit jellies, marmalades, fruit juices & vegetable juices etc. All processing units are required to obtain a license under this order Export of fruit & vegetable products is freely allowed

FISHERIES Foreign equity is permitted in fish processing sector. Fish processing projects with a minimum of 20 per cent value addition can be set up as 100 per cent Export Oriented Units All items can be exported freely except for silver pomfrets of weight less than 300 grams Export of marine products is allowed only after registration of the units as an exporter with the Marine Products Export Development Authority (MPEDA), Cochin

MEAT & POULTRY The Meat Products Control Order, 1973 under the Essential Commodities Act, 1954 regulates the manufacture, quality and sale of all meat products A license is required under this order to set up of a factory for producing/processing meat products Export of meat is subjected to pre-shipment inspection and a certificate is required from State Animal Husbandry Department/Directorate of Marketing and Inspection Slaughter of cows is banned in most of the States. Export of beef is prohibited MILK & MILK PRODUCTS Milk and Milk Products Order (MMPO) regulates milk and milk products production in the country. The order requires no permission for units handling less than 10,000 litres of liquid milk per day or milk solids up to 500 tonnes per annum All the milk products except malted foods are covered in the category of industries for which foreign equity participation up to 51 per cent is automatically allowed Ice cream, which was earlier reserved for manufacturing in the small scale sector, has now been dereserved. As such, no license is required for setting up of large scale production facilities for manufacture of ice cream GRAINS The Rice Milling Industry (Regulation) Act 1958 & Rice Milling Industry (Regulation &Licensing) Rules 1959 have been repealed from 28 May, 1997. Rice milling and pulse milling sectors, which were earlier reserved for the small scale sector, have now been de reserved There is no license requirement or price/distribution controls on manufacture of wheat products

PACKAGED FOOD The industry is de licensed and automatic approval for foreign investment up to 51 per cent of equity (except for items like malted food and items which are reserved for production in small scale sector) is granted The setting up of 100 per cent export oriented units requires specific government approval The packaging laws and regulations affecting food products are mainly covered under the Standards of Weights and Measures Act, 1976, and the Standards of Weights and Measures (Packaged Commodities) Rules, 1977 (SWMA) specifying the quantity and package labeling regulations for all products

CHALLENGES FACED
The most crucial challenge today that the Indian food processing industry is facing is the lack of suitable infrastructure in the shape of cold chain, packaging centres, value added centre, modernized abattoirs etc. Improvement in general infrastructure is also a must requirement for the industry to progress. Some other important initiatives that are needed are Promotion of appropriate crossbreeds while conserving indigenous breeds of livestock Establishment of livestock marketing system Promotion of rural backyard poultry in a cooperative marketing setup Development of cooperative dairy firms Enhancing livestock extension services Encouraging private veterinary clinic