New Delhi, Aug 1 (KNN) It is a favorable time for India to expand its exports by USD 10-12 Billion in China and the US. To capitalize on the opportunity emerging from the tariff war expansion of exports has been increased said, the Federation of Indian Export Organisations (FIEO).
FIEO organized a stakeholders consultation in association with the Department of Commerce, Government of India to increase exports of the country in these countries.
Exports can be increased if competitiveness is maintained and capacities are created quickly to meet the heavy demands coming from these markets.
Sharad Kumar Saraf, President, FIEO, said, “Identification of specified tariff lines in the US and China by the Department of Commerce has resulted in focussed attention by exporters to these products. It has been supplemented by proactive involvement by the Indian Embassy in China and the US who are working hard to link Indian exporters with foreign buyers.
Saraf further said, “China has been able to manage its currency, which is decreased by about 9 percent since the onset of tariff war, blunting 25 percent tariff disadvantage by about 11-12 percent. Moreover, appreciation of rupee by about 4-5 percent, further eroded the advantage for Indian exporters.
FIEO said that how quickly we can add to capacity will determine our success to get the best out of tariff war.
DG & CEO, FIEO, Dr Ajay Sahai suggested, “Excess capacity in Special Economic Zones (SEZs) maybe permitted to provide plug and play facility to grab the opportunity provided by tariff war. The Industry may not invest to create a permanent facility to increase production as duration and magnitude of additional tariff itself is uncertain. In addition to this, industry feels that with the creation of additional capacity, it may breach the threshold of MSME depriving it of various fiscal benefits."
Stakeholders also raised various issues affecting competitiveness covering logistics, infrastructure inadequacies, transaction cost, availability, and cost of credit.
Piyush Goyal, Commerce & Industry Minister, Piyush Goyal said, ” India is destined to be a USD 5 Trillion and exports have to rise to reach USD 1 Trillion. The Government will provide complete facilitation to exporters and manufacturers but days of subsidies are getting over. Goyal assured the industry that while MEIS will be withdrawn but it will be replaced by WTO compatible RoSCTL scheme, which is already operational for apparel and made-ups. He urged the industry to collect the data to get a rebate of all indirect taxes and cess through RoSCTL including Electricity, Coal cess, and royalty paid on mining.
The Minister further mentioned, “Government is reviewing all existing FTAs so as to assess their impact on exports as well as manufacturing. Moreover, further new negotiations will keep industry and consumer interest at the top of the agenda. Goyal asked the industry to move up the value chain to boost exports”.
He assured that the concerns of the industry with regard to the cost of credit and availability of credit is being deliberated with RBI and Banks so as to address them. He urged the industry to work together with Government so as to raise India's share in global exports from less than 2 percent to 5 percent.
Published On : 01-08-2019
Source : KNN India
