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. The Chambers interact with the government at different levels to reorient or put in place policies which reduce hindrances, increase interstate movement of goods, introduce transparency and remove multiple layers. of inspection and bureaucratic hurdles. Besides, the chambers also aims at erecting sound infrastructure and simplifying and harmonising the tax structures. 

The interventions are mainly in the following areas:

(i) 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. For

example, the construction of golden quadrilateral corridor announced by the Prime Minister of India in one of the Annual General Meetings of the Federation of Indian Chambers of Commerce and Industry (FICCI) will

facilitate internal trade.

(ii) 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.

(iii) Harmonisation of sales tax structure and Value Added Tax:

The Chambers of Commerce and Industry play an important role in interacting with the government to harmonise 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. As per the new policy of the government, the Value Added Tax is being levied in place of the sales tax

to remove the cascading effect of the sales tax.

(iv) Marketing of agro products and related issues: The associations of agriculturists and other federations play an important role in the marketing of agro products. Streamlining of local subsidies and marketing policies of organisations 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.

(v) Weights and Measures and prevention of duplication brands: Laws relating to Weights and Measures and protection of brands are necessary to protect the interest of the consumers as well as the traders. They need to be enforced strictly. The Chambers of Commerce and

Industry interact with the government to formulate such vs and take action against those who violate rules and regulations.

(vi) Excise duty: Central excise is the chief source of the Government revenue levied across states by the central government. 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.

(vii) Promoting sound infrastructure: A sound infrastructure like road, port, electricity, railways etc., play a catalytic role in promoting trade. The Chambers of Commerce and Industry in collaboration with the

government needs to take up heavy investment projects.

(viii) Labour legislation: A simple and flexible labour legislation is helpful in running industries, maximising production and generating employment. The Chambers of Commerce and Industry the government are constantly interacting on issues like labour laws, retrenchment etc.