Goyal hears concerns and fiscal challenges faced by exporters
FIEO President Dr A Sakthivel has highlighted good opportunities for India to export additional US$8 billion-$10 billion to Russia and US$15-$20 billion to the European Union in the next 12 months.
He sees good opportunities to increase exports to Russia and EU, despite the recessionary trends in those markets.
However, he reiterated the liquidity problems faced by Indian exporters and requested Commerce and Industry Minister Piyush Goyal to introduce Exports Refinance Facility for banks so as to refinance at Repo rate to the extent of credit extended to the export sector.
“The GST on exports freight has further added to our liquidity woes,” said the FIEO President, calling on the Minister to get exemption from GST on exports freight.
Looking into the rising interest rates, which have already crossed pre–Covid level, Dr. Sakthivel said that the exporters are looking towards increasing interest subvention to 5% for MSMEs manufacturers and 3% to all in respect of 410 tariff lines.
He also thanked Goyal for agreeing to include Iron & Steel, Pharma and Chemical sectors under the RoDTEP (Remission of Duties and Taxes on Export Products) Scheme which will impart further competitiveness to these sectors.
Dr Sakthivel made the requests to Goyal during Exporters Conclave held at Chennai on 16 Oct 2022.
Dr Shanmuga Sundaram, IAS Development Commissioner, MEPZ SEZ, also highlighted the export potentials of Tamil Nadu and as well as export from SEZ and said that the State is having highly developed industrial manufacturing eco-system and one of the largest hub for production of Automobile, textiles, leather, engineering, etc.
Exporters have flagged several issues related to the rising of cost of raw materials and subdued demand in certain key export markets, and have underlined the need for more support to the exporters in this difficult time.
Industry leaders requested for including left out sectors under RoDTEP and rationalisation of existing RoDTEP rates, exploring possibility for increased support under Interest Equalisation Scheme (IES) and under Market Access Initiative (MAI), and operationalisation of Production-Linked Incentive (PLI) Schemes for additional sectors, said FEIO in a release after the conclave.
Other issues discussed during the session includes the need for higher subvention under the Interest Equalization Scheme both for manufacturer MSMEs and exporters of 410 tariff lines; Relief on Average Export Obligation under EPCG for Service Sector; Export Benefit extension for export to Russia under Rupee payment; Higher freight costs; Withdrawal of 50% duty of export of law-grade Iron Ore; PLI scheme for Leather, Handloom, Auto parts etc. NTBs faced by the exporters in EU, Japan, China among others. fiinews.com
