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Indian operators vow to push for changeIndian operators vow to push for change
Gavin Lipsith
22-Feb-2006
Alpha Asia, Flemingo International and India Tourism Development Corp will cooperate to encourage the Indian government to take a less restrictive approach to duty-free retailing, the operators told delegates on the first day of the India Duty Free Workshop
India's three leading travel retailers have announced ambitions to work together in order to drive change in the market. Alpha Asia, Flemingo International and the India Tourism Development Corp (ITDC) told delegates to the inaugural India Duty Free Workshop in Cochin that they hoped to encourage the government to loosen restrictions on the market and introduce specific duty-free regulations in the country's Customs manual.Alpha Asia managing director Paul Topping hailed the conference as a "wake up call to the industry". He said the event should contribute to the travel-retail roadmap for India, which he described as "a marathon, not a sprint".
Flemingo International managing director Atul Ahuja explained the trials the company has faced in establishing itself in India. The company has operated in India for three years, and Ahuja said: "The growth has been great but there have been a lot of issues which we have had to fight from day to day. The issues are both state-related and government-related."
On the government side, Ahuja listed several issues, including the lack of regulations specific to duty-free, unnecessary public health requirements, restrictions on local currency sales and high levies for airport space. "As there is no chapter in the Customs manual for duty-free, provisions vary from state to state and the business is governed by rules for bonded warehouses, which are not applicable to retail," he said.
Cochin Special Economic Zone development commissioner CJ Matthew told delegates that the government would probably be more willing to change its practices as the business becomes bigger. The former Customs official said: "Because of low numbers the laws of the country have not been geared for issues pertaining to duty-free retail. As the numbers grow the government is likely to agree that they need to evolve." Matthew urged retailers to contact the tourism ministry to aid their cause as travel-retail has a direct effect on tourism, while the ministry of commerce is "heavily biased towards revenue collection."
Over 25 speakers took the stage at the conference, organized by Alpha Asia. A full report will appear in a forthcoming issue of DFNI.
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