June 20, 2017 6:25 PM

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Exporters seek incentives from govt to boost shipments: Commerce Secretary

Exporters today sought incentives such as credit at affordable rates from the government with a view to boost India's shipments. The issue was raised and discussed during the meeting of Board of Trade chaired by Commerce and Industry Minister Nirmala Sitharaman in New Delhi. Speaking to media after the meeting Commerce Secretary Rita Teaotia said that exporters and industry representatives from chambers raised matters related with Goods and Services Tax. She said, the objective of the meeting was to take suggestions and inputs for the review of the foreign trade policy (2015-20), which is expected to be released by the end of this month. Ms Teotia said, many of the comments and inputs were focused on exports, which has started showing positive growth, but the exporters would need support in order to continue to grow over the next few years. She said many export promotion councils have sought additional support through the Merchandise Exports from India Scheme (MEIS), enhanced interest subvention. Under MEIS, the government provides duty benefits at 2 per cent, 3 per cent and 5 per cent, depending upon the product and country. In 2015, the ministry had announced 3 per cent interest subsidy for exporters to cut cost of credit for sectors, including SMEs, handicrafts, agri and food items. Exporters wants this benefit for more sectors. Several concerns, including blockage of working capital, over implementation of GST were raised by exporters with the government. They also sought support to explore new markets. The Secretary said, discussions were also held on issues like e-commerce trade, market access, market development, EXIM credit, insurance to exporters and lower cost of credit to facilitate exports. She said, Ministry has taken on board all the suggestions and it would be factoring in many suggestions in the policy. When asked about GST, to be rolled out from July 1, and its impact on exports, Ms Teotia said, exports are zero rated under GST and there is no anticipation of any adverse impact.The country's exports rose by 8.32 per cent to USD 24 billion in May, even as the trade deficit shot up to nearly 30-month high of USD 13.84 billion, mainly due to increase in gold imports. Further, talking about the BoT meeting, Teaotia said exporters raised the fitment issue under the GST, which would be examined by the fitment committee.Exporters also flagged the issue of facilitation of e- commerce trade from more number of ports and how the refund process for the e-commerce would be treated under the GST. The BoT advises the government on policy measures related to FTP in order to achieve the objective of boosting India's trade. The last meeting was held in April 2016.The reconstituted BoT comprises of 19 members from industry and academia (non-official members), 31 heads of trade and industry associations (ex-officio members), and 20 top officials, including 13 secretaries to government of India, Deputy Governor of RBI, Railway Board Chairman and National Highways Authority of India Chairman.

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