Role of Indian Chambers of Commerce and Industry in Promotion of Internal Trade
The Chambers of Commerce and Industry was started as an association of business and industrial houses to develop and protect their common interest and aims. Lot of such chambers have been established and are present in our country like for example, ASSOCHAM, Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI). Such chambers of commerce call themselves as the national guardians of trade, commerce and industry. The Indian Chambers of Commerce and Industry play a catalytic role to strengthen internal trade to make it an crucial part of overall economic activity. These Chambers interact with the government at various levels to reorient or reorder policies which reduce hindrances, increase interstate movement of goods, introduce transparency and remove multiple layers of inspection and bureaucratic hurdles. And also these chambers also intend at erecting sound infrastructure and simplifying and harmonising the tax structures.
- Transportation or Inter State Movement of Goods: The Chambers of Commerce and Industry aid in a lot of activities relating to inter state movement of goods which includes registration of vehicles, surface transport policies, construction of highways and roads. For example, the construction of golden quadrilateral corridor announced by the Indian Prime Minister in one of the Annual General Meetings of the Federation of Indian Chambers of Commerce and Industry (FICCI) is going to boost internal trade.
- Octroi and Other Local Levies: Octroi and local taxes are the significant sources from which the local government gets revenue. This is got on the products and from people entering the state or the municipal limits. The government and Chambers of Commerce must make sure that their imposition is not at the rate of smooth transportation and local trade.
- Harmonisation of Sales tax Structure and Value Added Tax: This Chambers of Commerce and Industry plays a significant role in interacting with the government to harmonise the sales tax structure in various other states. This sales tax is crucial for any state's revenue. A rational structure of the sales tax and its uniform rates in all the states, are important for maintaining the balance of trade. According to the new policy of the government, the Value Added Tax is being levied instead of the sales tax to eliminate the cascading effect of the sales tax.
- Marketing of Agro Products and Related Issues: The associations of agriculturists and other federations have a significant role to play the marketing of agro products. Streamlining of local subsidies and marketing policies of organizations which sell agro products are a few of the areas where the Chambers of Commerce and Industry can really interfere and interact with concerned agencies like farming cooperatives.
- Weights and Measures and Prevention of Duplication Brands: Laws relating to Weights and Measures and protection of brands are required to protect the interest of the customers and also the traders. The Chambers of Commerce and Industry interact with the government to design such laws and take action against the people violating these rules and regulations.
- Excise Duty: Central excise is the chief source of the Government revenue levied in all the states by the central government and the excise policy plays a significant role in pricing mechanism and hence the associations need to interact with the government to make sure streamlining of excise duties.
- Promoting Sound Infrastructure: Sound infrastructure like road, port, electricity, railways etc., play a action boosting role in the promotion of trade. The Chambers of Commerce and Industry in collaboration with the government requires to undertake heavy investment projects.
- Labour Legislation: An easy and flexible labour legislation is useful in running industries, maximizing production and generate employment. The Chambers of Commerce and Industry the government are continuously interacting on topics such as labour laws, retrenchment etc.
- Internal trade
- Wholesales Market traders
- Wholesale trade Retailers
- Cheap jacks
- Retail trade
- Internal retailers
- Speciality stores
- Single line stores
- Chain stores
- Vending machines
- Departmental stores
- Super markets
- Chambers of Commerce